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More market-based tools; less supply chain vulnerability: China’s rare earths policy reforms and their impact on the global supply chain
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DOI：10.3389/fenvs.2026.1854509.png)
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Abstract
En 中文
Rare earth elements (REEs) are critical metals for clean energy technologies. All countries face urgent challenges in mitigating supply chain risks and stabilizing the global REEs supply. As a major supplier within the global REEs supply chain; China’s market-based policies targeting market participants exert substantial impacts on supply chain security. This study adopts the Autoregressive Distributed Lag model to analyze how China’s market-based REEs policies affect global supply chain vulnerability. The empirical results show that such policies can alleviate supply chain vulnerability. A greater number of market-based policy tools slightly lowers vulnerability (coefficient = −0.02; p < 0.1). A higher proportion of market-based tools significantly curbs vulnerability in the short term (coefficient = −4.56; p < 0.01); yet the long-term effect (coefficient = −1.25) lacks statistical significance. This study puts forward policy adjustments to improve policy efficiency and further reduce supply chain vulnerabilities.
Keywords:
rare earth elements
policy tools
ARDL model
supply chain vulnerability
China’s rare earths policies
market-based policies
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