I recently came across a compelling report by CNBC-TV18 on Instagram, where Dhea Eapen lucidly breaks down China's latest move to restrict exports of rare earth materials. (Source 1, Source 2). It's a move many are calling the weaponization of a critical resource, and I must say, it feels like an inevitable strategic play I have seen coming.
This development is not a surprise. For years, I have documented my thoughts on the shifting sands of global power, with China, electric vehicles, and critical materials like Lithium-ion being recurring subjects in my writings. Seeing Beijing formally weaponize its dominance in rare earths feels like a validation of long-held concerns about strategic dependencies. It was never a matter of if, but when this leverage would be used.
What Dhea Eapen explains is more than just a trade dispute; it's a calculated move on the global chessboard. These materials are not just commodities; they are the lifeblood of modern technology and defense. From the magnets in EV motors at Tesla to the sophisticated components in Apple's iPhones and the guidance systems in fighter jets, our future is quite literally built with these elements. By tightening its grip, China is sending a clear message: access to the future of technology runs through Beijing.
The shockwaves are a necessary wake-up call. The scramble by the U.S. and India to secure alternative supply chains is a reactive measure to a threat that has been growing in plain sight. True strategic autonomy cannot be an afterthought. It requires foresight, sustained investment in domestic capabilities, and a diversification of sources before the crisis hits.
This situation reinforces a fundamental truth I've often reflected upon: over-reliance on any single source for critical resources is a strategic vulnerability waiting to be exploited. The world is now facing the consequences. The question is no longer just about cutting dependence, but about fundamentally re-architecting our global supply chains for a new era of geopolitical competition.
Regards,
Hemen Parekh
Of course, if you wish, you can debate this topic with my Virtual Avatar at : hemenparekh.ai
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