Rare Earths: China's Royal Flush

Over the past decades, China has secured an almost unrivaled position in the mining and processing of rare earths—a geopolitical royal flush that presents new challenges for the Western world. These resources are indispensable for many modern technologies and industries. Shortages or export restrictions impact not just individual companies, but entire value chains.
For German companies and investors in particular, this creates a structural risk that has often been underestimated. The effects on capital markets are already being felt, as uncertainties about supply directly influence valuations.
But how great is this dependency really, and which sectors are especially affected?
Our latest analysis sheds light on China’s strategic position of power and examines what this means for investors.