Primary Taiwanese news agency Central News Agency (CNA) recently reported that, although the U.S. and China just reached a truce agreement on tariffs and rare earth controls, Beijing has more leverage than just rare earths. It also holds absolute advantages in lithium batteries, mature process chips, and pharmaceutical raw materials.
In the lithium-ion battery field, the world’s top two battery manufacturers are both Chinese companies: CATL and BYD. Even if the batteries are produced in other regions, the core materials are still highly dependent on China. According to data provided by Benchmark Mineral Intelligence, Chinese suppliers produce 79 percent of the world’s battery cathode materials and 92 percent of the battery anode materials, and control 63 percent of the refined lithium, 80 percent of the refined cobalt, and 98 percent of the refined graphite supply.
In the field of mature process chips, China currently accounts for about one-third of global mature chip production capacity. Although these chips are less difficult to produce than advanced chips, they are crucial for sectors such as automobiles, consumer electronics, and defense. Furthermore, China controls key minerals such as gallium and germanium needed to manufacture chips and optoelectronic products. In 2024, China accounted for 99 percent of global gallium production and was also the world’s largest producer of germanium.
The third important industry is pharmaceuticals. China plays a dominant role in the supply of active pharmaceutical ingredients and their precursor chemicals. For example, most of the acetaminophen and ibuprofen imported into the U.S. come from China, and China is also a major producer of antibiotic raw materials. The U.S. generic drug supply is heavily reliant on India, and a large portion of the active ingredients in Indian generic drugs come from China.
Source: CNA, November 6, 2025
https://www.cna.com.tw/news/acn/202511060374.aspx