Not Just Rare Earths – Is This China’s Next Economic Weapon?

The Diplomat  |  Lydia Tze

China’s dominance in the global fluorine value chain provides Beijing with an overlooked source of geopolitical leverage that could surpass traditional critical minerals. While international attention remains focused on rare earths, graphite, and lithium, the Chinese state has quietly secured control over the industrial ecosystems transforming fluorite into indispensable high-tech components.

This strategic advantage stems from a vertically integrated economy where the nation controls 69 percent of global fluorite production, yielding an estimated 6 million metric tons in 2025. Beyond raw extraction, domestic producers command over 50 percent of global production of high-purity downstream derivatives like hydrofluoric acid and fluoropolymers. These purified chemicals serve as the primary precursor for critical sectors including electric vehicle batteries, semiconductors, and nuclear energy production. By combining this processing monopoly with a comprehensive export control regime, the government has established a highly resilient supply chain that is exceptionally difficult for foreign competitors to replicate, threatening global economic and national security.

To read in details click here