Rare earth metals

It is among the nations that are developing capacity for the minerals to reduce reliance on China

Investors know more about the value of these materials than host governments do

The region does not have to choose between the two superpowers

The countries will also pursue more favourable tariffs on US$30 billion of non-sensitive goods

In 2024, China accounted for about 94% of global rare earth permanent magnet manufacturing

These components, used in everything from cars to consumer goods, give Beijing leverage in trade

Evidence indicates that the country’s export restrictions would cost the West far less than often feared

Demand for rare earths remain strong

Tokyo provides a good model for developing supply chain resilience for critical inputs