Analysis of the Strategic Game in Sino-US Rare Earth Trade Conflicts and Cooperation: The Complexity of Great Power Competition and Interdependence

Zijia Peng
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Zijia Peng: School of Humanities and Social Science, The Chinese University of Hong Kong, Shenzhen, China

Journal of World Economy, 2025, vol. 4, issue 4, 132-144

Abstract: This study focuses on Sino-US rare earth trade, exploring its role as a core issue in the two powers’ strategic competition amid great power rivalry and global supply chain interdependence. Against the backdrop, China, with a dominant global position via its complete rare earth industrial chain (controlling 60% of mining, 88% of smelting), uses export controls as a defensive response to U.S. tech suppression; the U.S., highly dependent on Chinese processed rare earths (90% of 2022 consumption), takes measures like reviving domestic industry and diversifying supply chains, with the 2025 Trump administration’s trade coercion intensifying the game.

Keywords: Sino-US rare earth trade; strategic game; Power Transition Theory; adjusted Offensive Realism; Interdependence Theory; rare earth supply chain; great power competition; decoupling risk; defensive countermeasure; strategic resource control (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:cvg:jouwec:v:4:y:2025:i:4:p:132-144

DOI: 10.56397/JWE.2025.08.13

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