Yangon, Jan 2 (NationPress) - According to an article featured in Mekong News, China is strategically utilizing its supply chains and its substantial control over rare earth elements (REEs) and other vital minerals to exert asymmetric influence over global industrial networks.

These 17 metals and their corresponding compounds are crucial in the production of electric vehicle motors, microchips, precision-guided munitions, and renewable energy initiatives.

Chinese companies dominate more than 90 percent of global rare earth processing capabilities, which they are leveraging to enhance their negotiating power by restricting exports, even to nations such as the USA.

The article points out that former President Donald Trump was compelled to backtrack on US tariff increases against China after Beijing withheld exports of rare metal magnets, significantly impacting the American manufacturing sector.

It emphasizes that China's economic tactics are increasingly aware of geopolitical dynamics and actively integrate coercive capabilities. Export controls are not merely commercial regulations but are also used as policy tools to sway external entities.

Moreover, a recent analysis commissioned by the U.S. government indicates that Beijing is intensifying this approach by prioritizing control over critical supply chains and employing export restrictions on essential minerals as a coercive measure to obtain favorable policy concessions during trade discussions.

The repercussions have been far from theoretical. Industries across the U.S., Europe, and allied nations are experiencing concrete disruptions. Limitations on output and uncertainties regarding access to rare earths and related materials have compelled companies to rethink their global production strategies, while governments scramble for alternatives, as noted in the report.

A report from the European Union Chamber of Commerce revealed that over 70 percent of EU firms operating in China have reassessed their supply chains, often relocating portions of their value chains away from China due to unpredictable export policies and market conditions.

In the U.S., diverse sectors, including automotive and defense, are grappling with these challenges. The shortages caused by Beijing's regulatory strategies have laid bare the vulnerabilities of critical sectors, even after years of policy focus.

The strategic application of export controls is part of a broader phenomenon that some scholars refer to as “weaponized interdependence”, where economic networks are designed or manipulated to produce strategic advantages or exert coercive pressure, the article concluded.