Bessent touted U.S. aerospace and chemical exports as leverage, but China’s control of rare earths is a deeper strategic vulnerability requiring domestic refining capacity.
Treasury Secretary Scott Bessent has argued the United States can wield export leverage through aircraft engines and specialty chemicals, reflecting genuine strengths in aerospace and advanced feedstocks.
Analysts caution that framing those exports as equal levers overlooks a structural asymmetry: China dominates rare earth minerals, which are embedded upstream across defense, automotive electrification, energy and electronics supply chains. A Chinese restriction on separated rare earths or permanent magnet materials could disrupt U.S. automakers, defense contractors and clean‑energy projects within weeks.
By contrast, aircraft engines and many chemical inputs are softer choke points: Beijing has invested heavily in domestic aero‑engine development and securing alternative suppliers, which reduces the potential impact of U.S. export curbs.
The imbalance heightens the urgency of building U.S. capacity for ore‑to‑metal refining, separation and high‑performance magnet production. Investors and policymakers should expect continued policy measures and private investment to accelerate domestic refining and magnet manufacturing. Rhetoric about other bargaining chips may calm markets temporarily, but supply‑chain exposure to Chinese rare earths remains a strategic vulnerability.