Rare Earth as Strategic Leverage: China's Export Restrictions, Global Responses, and Conceptual Framework for Analysis

Rare earth elements (REEs) are vital to advanced technologies in clean energy, electronics, and defense, yet their supply is dominated by China, which employs export restrictions to exert leverage on global markets. This paper examines China's policies and the ensuing global responses through a synthesized lens, drawing on interdisciplinary literature to develop a novel conceptual framework. The framework elucidates the causal pathways that link policy changes to supply chain reconfigurations, technological innovations, and enhanced industrial security. By integrating insights from resource economics, international relations, and innovation studies, this study highlights how export restrictions prompt importers like the United States, Japan, and India to diversify their supply sources and adapt their industrial strategies. The analysis emphasizes the urgent need for a structured model to guide future research and policy-making, ultimately advocating for resilience in an increasingly interdependent global economy where the stability of REE supply chains is critical for technological advancement and national security.