In the 1984 science fiction film Dune, Baron Vladimir Harkonnen uttered the famous quote that can aptly be used to describe rare earth metals: “He who controls the spice, controls the universe.”
The spice was central to the Dune universe, allowing trade to flourish and planets to prosper. In the same way, rare earth metals seem to be the spice today.
These metals are used in almost every electronic device, from smartphones and cars, to ballistic missiles.
In a sweeping move Thursday, China has tightened export rules on these critical materials, asserting dominance over the global tech supply chain.
The new measures mean companies need to apply for a licence from Beijing to export any products containing Chinese-sourced rare earth metals, while companies tied to foreign militaries or placed on export-control or watch lists will be denied permits.
China accounts for about 70% of the global supply and has repeatedly used critical minerals as a bargaining chip in trade discussions.
With a potential Trump-Xi meeting in South Korea soon, Beijing may be signalling its leverage ahead of high-stakes talks by tightening control over rare earth exports, and sending a message to the world that in the race for tech supremacy, it holds the high ground.