The Dialogue
Abstract
This paper examines and compares the approaches of the United States and China towards rare earth minerals as strategic resources in an increasingly competitive geopolitical environment. Rare earth minerals are essential inputs in many advanced electronics, defense systems, and clean energy technologies, which has caused control over them to be viewed as a matter of national security concern. While both countries hold rare earth minerals as a strategically significant resource, they differ in their approach to acquiring them. China relies on centralized state control, including state-owned enterprises, export restrictions, and industrial subsidies, to consolidate control over the industry. The United States still operates within a market-based framework, but has increasingly utilized targeted government intervention via investment, contracts, and supply chain partnerships to reduce dependence on China. By comparing both of these approaches–and drawing a parallel to artificial intelligence policy—this paper argues that both countries exhibit behaviors of neo-mercantilism. Despite their differing economic systems, both governments are intervening in critical sectors to strengthen their strategic position and reduce vulnerability to external pressure.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
Recommended Citation
Polefka, Lachlan
(2026)
"Rare Earth Rivalries and the Return of Mercantilism,"
The Dialogue: Vol. 11:
Iss.
1, Article 3.
Available at:
https://scholar.smu.edu/thedialogue/vol11/iss1/3
