Why Asia weaponized rare earths, soybeans and palm oil in 2019

Resource nationalism took hold amid trade war tensions and environmental risks

Prices for rare earths like Neodymium surged in the middle of 2019 as importers feared China would take the crucial elements hostage. © Reuters

RURIKA IMAHASHI and CK TAN, Nikkei staff writers

December 28, 2019 20:00 JST

TOKYO/SHANGHAI -- As China and the U.S. exchanged trade war salvos in May, Chinese President Xi Jinping visited a rare-earth magnet factory in the southeastern province of Jiangxi. His message was clear: China, which accounts for nearly 90% of the world's rare earths production, would have no compunction about taking the crucial elements hostage.