Just after China announced controls on rare earth exports, this policy quickly triggered a strong reaction from Western countries.
On October 15th, U.S. Treasury Secretary Bescent publicly accused China of "trying to be an enemy of the whole world", while the European Union joined forces with the Group of Seven to form a 33-nation camp, trying to force China to cancel relevant policies through collective pressure.
However, what was unexpected for the West was that China not only failed to retreat, but also quickly launched a second wave of counter-reaction, showing comprehensive response capabilities from resources to technology and trade.
This game is not only about rare earth resources, but also about the future of global supply chains.
Rare earth resources are called the "vitamins" of modern industry and are widely used in high-tech fields such as new energy vehicles, wind power generation and chip manufacturing.
China has about 30% of the world's rare-earth reserves, but it has about 90% of the world's rare-earth processing capacity, especially in the middle-weight rare-earth separation technology.
About 80 percent of U.S. rare earth imports each year depend on China, while the EU is trying to reduce its dependence on China by setting a 20% self-sufficiency target by 2030.
However, the high threshold for rare earth mining and refining technology makes it difficult for the West to diversify its supply chain in the short term.
Western countries have responded quickly and strongly to China's rare earth policy.
The European Union and the G7 jointly acted to try to force China to lift control measures through collective pressure.
Danish Foreign Minister Rasmussen said that the EU will closely coordinate countermeasures with the United States and will not take separate action.
However, this joint action is not entirely consistent.
There are clear disagreements within the EU about the rare-earth price limit scheme, and countries such as Germany and Italy are concerned that a cost hike could impact their own automotive industry.
At the same time, there are also differences in the ability of domestic industries in the United States to cope with the shortage of rare land.
These internal contradictions have greatly reduced the effectiveness of Western joint actions.
At the same time, China's counter-measures are quick and precise.
On October 10, China's Ministry of Transport announced that it will impose a special port fee on ships hanging U.S. flags, U.S.-made or U.S.-funded.
The measure targeted the U.S. plans to impose high port charges on Chinese ships from October 14.
China has made it clear that the move is a “legitimate defense” and is aimed only at the United States.
In addition, China has included more than a dozen foreign companies involved in arms sales and technology blockade to Taiwan in the "list of unreliable entities" and drawn technical red lines.
These measures have formed a comprehensive countermeasures system covering the fields of resources, trade and technology, further consolidating China's strategic advantages.
China’s counter-reaction has already seen results.
US experts admit that it may take a generation for the United States to completely get rid of its dependence on China's rare earths.
Even if the United States can obtain rare earth raw ores, it will still need to rely on China's refining capacity in the short term.
More importantly, Chinese rare-earth enterprises are further improving production efficiency and reducing costs through intelligent transformation.
This technological advantage is not only difficult to surpass, but may continue to expand in the future.
Behind this rare earth game are profound changes in the global supply chain pattern.
China’s rare earth control and countermeasures not only reflect its firm determination to safeguard resource security and technological sovereignty, but also reveal the deep dependency of the global industrial chain on China.
Although Western countries try to confront China through joint actions, technological gaps and internal contradictions make it difficult for them to formulate effective countermeasures.
How will the global rare earth industry pattern evolve in the future?
Can the West successfully get rid of its dependence on China?
How will China further consolidate its technological and resource advantages?
The final result of this game may reshape the map of the world economy.