Why China’s critical mineral dominance is still disrupting US supply chains
Businesses hope US President Donald Trump’s visit to China in late March will ease bottlenecks
American companies are grappling with a shortage of critical minerals used in daily operations despite China easing some of its export controls, according to industry insiders.
But China’s dominant position in the global market for these vital raw materials, including heavy rare earths, continued to weigh on US companies, industry insiders said.
“There is no immediate broad-based solution except supply loosening in China,” said David Abraham, director of Three Legged Capital in New York, a specialist advisory firm focused on critical mineral supply chains.
“It’s not just that materials are dear; it’s that they are not getting to manufacturers,” he added, noting the current situation was creating “severe challenges” for the defence and tech industries.