China's dominance in rare earths, essential for high-tech products like electric car motors, leaves U.S. Supply Chains Vulnerable, according to U.S. Trade Representative Katherine Tai. China's ability to control the global market for rare earths, combined with its coordinated industrial and trade policies, gives it significant pricing power. Tai emphasized the need for the U.S. to diversify its supply chains and reduce reliance on China. The Biden administration has announced initiatives to encourage domestic development and manufacturing of critical technologies. China's monopoly extends to other materials like lithium, used in electric car batteries, creating further market leverage.

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