The import dependence of the democratic world on China’s Rare Earth Elements (REEs) poses significant geopolitical, environmental, and ethical challenges, as highlighted by the Global Witness (GW) report in May 2024, titled ‘Fuelling the Future, Poisoning the Present: Myanmar’s Rare Earth Boom.’ This report underscores the urgent need for sustainable and ethical practices within the REE supply chain, particularly in the face of China increasingly importing from Myanmar, a nation under international sanctions by the European Union (EU), the United States (US), and the United Nations (UN). Often extracted under questionable conditions, these materials fuel various high-tech industries, including electric vehicles (EVs), wind turbines, electronics, defence, and nuclear sectors. China has strategically leveraged Myanmar as a resource hub by shifting its heavy rare earth extractions, following a crackdown on such activities in Southern China.
China’s Strategic Control Over Rare Earths: Global Supply Chain Implications