America Sold Its Rare Earth Industry—and China Bought the Chokepoint
America Didn't Lose Its Rare Earth Industry. It Sold It
China refines over 90% of the world's rare earths, turning a $10 billion market into a chokepoint that can freeze trillions in global GDP. The U.S. didn't lose this industry by accident; private companies sold it for short-term profit. Now, as Beijing weaponizes supply, a new financial instrument—a contingent convertible security—could align government and private interests to rebuild the supply chain before it's too late.
That a $10 billion market can grind to a halt trillions in global gross domestic product is the definition of a chokepoint.