US seeks to reduce rare earth dependence on China for AI technology

The United States is intensifying efforts to reduce dependence on China for rare earth minerals and critical supply chains essential for artificial intelligence technology. In an exclusive interview, US Undersecretary of State for Economic Affairs Jacob Helberg outlined Washington's strategy to rally allies and secure alternative sources. This push is part of a broader geopolitical competition between the US and China over leadership in AI, which Helberg described as a defining contest of the era. The interview, part of a series, highlights ongoing policy work under the Trump administration to diversify supply chains away from China, which currently dominates rare earth processing. No specific new policy announcements or timelines were disclosed.

Global Impact

Politically, the US effort to decouple rare earth supply from China reinforces the broader technology rivalry and could accelerate allied coordination through frameworks like the Minerals Security Partnership. Economically, any successful diversification would reduce China's leverage over global tech supply chains, but near-term disruption is limited as China still controls over 60% of rare earth mining and 90% of processing.