Why China Played the Rare Earth Card NOW

by New Rules [10-17-2025].

(RAD: Pay close attention to what China did before it clamped down on exporting rare earth products. It recognized that it was importing 95% of the helium gas that it needed from the US that was critical to China. This was leverage that the US had over China. Instead of shooting themselves in the foot, equivalent to what Trump has done with excessive tariffs, China shifted their imports of helium from the US and developed new technology that can make China self sufficient. Now the US can't use helium as a leverage against China. See the "Related" article at the end to get a sense of how difficult it is to extract ultra pure helium. — RAD)

Why did China wait to leverage rare earths against the US? The answer lies in a critical, hidden vulnerability: HELIUM.

Until recently, the US held a powerful counter-card. As of 2022, China imported 95% of its helium, with the market dominated by US firms and technology.

Why Helium Matters:

This isn't for party balloons. Helium is mission-critical for:

🔸Quantum Computing

🔸Rocket Technology

🔸MRI Machines

🔸Chip Lithography (as a coolant)

The US helium stranglehold was a massive strategic risk for China, preventing retaliation on rare earths.

China's Decisive Move to Break the "Helium Shackles":

Alarmed, China launched a massive, multi-pronged campaign:

🔸Industrial Ramp-Up: Seven new helium extraction facilities came online.

🔸Supply Chain Diversification: Shifted imports from the US to allies like Russia.

🔸R&D Overdrive: The Chinese Academy of Sciences awarded its top 2024 prize for breakthrough helium extraction tech, breaking the US monopoly.

The Result:

By end of 2024, China slashed its helium dependence on the US to under 5%. The shackles were broken.

THE BOTTOM LINE:

Power is about actionable leverage. Nations often can't retaliate against US sanctions because they lack alternatives.

China is the first to systematically neutralize its pressure points—not just in helium, but in chips, energy, and pharma. The rare earths move isn't new aggression; it's the result of developed capability to finally say "NO."

Related

China develops device that extracts 99.99997% pure helium from natural gas fields [8-28-2025] Vacree’s breakthrough helium device cracks purity barrier, securing China’s supply for science, space, and semiconductors. (As you can see from this article, extracting ultra pure helium is a very complex process.)