China’s tightened export controls on critical minerals in recent years have sparked widespread concern over the stability of global rare-earth supplies.
During a panel discussion titled “New Frontiers in the Trade-Economic Security Nexus in Asia” hosted by the Washington-based Brookings Institution on June 9, 2026, Kristy Hsu (Director of the Taiwan ASEAN Studies Center at the Chung-Hua Institution for Economic Research) joined the various experts to discuss regional trade and supply chain dynamics. The panel addressed the global supply chain restructuring and the increasing demands for economic security. It was emphasized that countries must collaborate by pooling technology, capital, human resources, and raw materials to develop a more diversified and resilient supply network for critical minerals.
Critical Minerals Emerge as Core to Economic Security; Nations Push to Cut Single-Market Reliance
Addressing the rare-earth supply issue, Director Hsu noted that Taiwan has made significant strides in rare-earth refining technologies through aggressive investments in indigenous R&D for critical materials. She suggested that by integrating the natural resources and industrial strengths of multiple nations, a more resilient supply network could gradually take shape, thereby effectively reducing global reliance on any single source.
Director Hsu emphasized that rare earths—integral to electric vehicles, consumer electronics, defense equipment, and broader high-tech sectors—have become vital strategic resources dictating industrial competitiveness and economic security. As nations increasingly prioritize supply chain resilience, advancing transnational cooperation and diversified sourcing will be a critical trajectory moving forward.
Director Hsu highlighted the recent advancements in U.S.-Taiwan economic cooperation and noted that, following the signing of bilateral investment memorandums and trade agreements, collaboration has moved beyond traditional trade. It now encompasses areas such as investment, supply chain security, export controls, and national security reviews. This shift underscores the growing prominence of economic security in international trade partnerships.
Future international trade agreements are poised to place a heavier emphasis on supply chain resilience and economic security. Striking a balance between promoting trade liberalization and safeguarding industrial security will emerge as a pivotal policy challenge for governments worldwide.
Author: CIER Editorial Team
Date: June 10, 2026