China’s secret weapon isn’t AI or military, it’s rare earth dominance

4 Dec 2025 · 1 min

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0:59

Dan Novaes explains that China’s most important economic/geopolitical leverage comes from its dominance in processing rare earth elements rather than military power or AI. He cites a chart showing a shift since 1995 to China processing about 90% of the world’s rare earths, notes that rare earths are critical for devices from AirPods to EV motors and military jets (an F-35 uses over 400 kg), and emphasizes that the US has mineral deposits but lacks processing capacity — which is the real bottleneck giving Beijing market control.

Questions this video answers

About 90%.

Production was balanced (no dominant processor).

Over 400 kg.

Chapters

What if I told you that China's biggest economic weapon isn't military or AI, but rather rare earth elements? Look at this chart. In 1995, the world's production was balanced, but today, China processes almost 90% of them. The reason why your phone, your car, and even a fighter jet can't be built without them is the most important geopolitical secret right now. These are rare earth elements, and they are critical. They create magnets so powerful that they put conventional ones to shame. Your AirPods need them for tiny, powerful speakers. Your car needs them for windows and airbags. An F35 fighter fighter jet uses over 400 kg of them. EVs, forget about them without the rare earth magnets in their motors. But here's a secret. Rare Earths aren't actually rare. The US has plenty. The problem is processing them, which is incredibly difficult. China has mastered it, processing nearly 90% of the world's entire supply. This gives Beijing massive leverage over the global economy. They basically control the market for the elements that build our modern world. For more information like this, follow ubk.