How China's Lock on Rare Earths Is Pressuring Trump in Trade Talks
China's chokehold on a group of minerals that are critical to making everything from electric vehicles to jet fighters has handed Beijing a powerful tool in its bruising trade fight with the U.S.—a weapon it could wield again in the future.
China has managed to shift the balance of power in its fight with the U.S. by leveraging its control over rare-earth magnets, nickel-sized components that are indispensable for powering car motors, industrial robots and missile guidance systems. China's decision this year to cut back on exports of the magnets for just a couple of months sent shockwaves through the global auto, electronics and defense industries.
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