China has more than just rare earths as leverage; a Wall Street newspaper urgently warns: three other weapons are even more powerful!
Recently, a report by a Wall Street newspaper pointed out that the tightening of rare earth exports has made Western countries taste the "disruption" of supply. But this is just the tip of the iceberg. What truly worries the international market is China's dominant position in three other key areas, which are quietly building up a stronger strategic leverage: lithium-ion batteries, mature process chips, and drug active pharmaceutical ingredients (API).
According to data from the International Energy Agency (IEA) in 2024, about 80% of global lithium-ion battery production capacity is concentrated in China. China also controls about 60% of global lithium processing capacity, 75% of cobalt chemical refining, and nearly 90% of graphite anode material production. In 2023, the EU tried to reduce its reliance on China through the Critical Raw Materials Act, but its domestic battery production capacity is still less than 5% of the global total, and it is almost impossible to replace Chinese supply in the short term.
The situation with chips is different. Although high-end chips with processes below 7 nanometers are still dominated by TSMC and Samsung, more than 70% of mature process chips of 28 nanometers and above are produced by Chinese companies. These chips are widely used in automobiles, home appliances, industrial equipment, and even defense systems.
According to data from the China Semiconductor Industry Association, in 2024, China's monthly capacity for mature process wafers exceeded 6 million pieces, accounting for more than 70% of the global total. A 2023 internal assessment by the U.S. Department of Commerce admitted that if China restricts the export of 28-nanometer chips, it would directly impact over 90% of the global automotive electronics supply chain.
The third leverage is drug active pharmaceutical ingredients (API). A 2024 report by the U.S. Food and Drug Administration (FDA) revealed that, for common medicines such as antibiotics, antihypertensive drugs, and antidepressants, Chinese enterprises have global capacities ranging from 60% to 90% for key raw materials such as penicillin potassium salt, acetaminophen, and atorvastatin intermediates. As of the end of 2024, the self-sufficiency rate of API in the United States is still less than 15%, and rebuilding a complete pharmaceutical raw material chain will take at least ten years or more.
It is worth noting that these three fields are not isolated. They collectively form the foundation of modern industrial society: batteries drive the green transition, chips support digital infrastructure, and medicines maintain public health.
Original: www.toutiao.com/article/1848023816716484/
Statement: This article represents the views of the author himself.