China’s Global Monopoly on Rare-Earth Elements

Abstract

This article delivers a novel economic analysis of US dependence on China for rare-earth elements and sheds lights on how Western nations may exploit "limit pricing" to break China's global monopoly in rare-earth element production and refinement. This analytical framework, supported by a comprehensive literature review, the application of microeconomic and industrial organization concepts, and two case-study scenarios, provides several policy recommendations to address an important foreign policy challenge for the United States.