This news when reported some months ago did also raise the same point about the policies. If China had made policies that are reaping benefits then it should encourage other nations to follow the suit.
REE availability is going to be a challenge for the elctronic component and battery manufactureres in the near future. The manufacturers should develop strategies to avoid any problem in the suplly chain. The first way is to consider is REE recycling so that they can reuse the REE From the electronic waste generated.
This seems to be another case of China acting in its own self-interest as a developing superpower. If other countries have reliances on these resources for their own needs then they need to either develop their own internal sources or secure trade agreements with outside sources. Other than that, I don't really see a threat here. As for China's position as the world's manufacturer, others have held that position in the past and I suspect that a different set of others will hold it in the future. If / When China really starts seriously developing their intellectual capital through education then things will get really interesting.
its not a secret that china would like to keep dominance as main source of world electronics production. With rigid move to cut rare earth materials they powered their position more and ringed bells at counterparts as Japan & US. Unfortunetelly due to high costs of mining and eagered chinese sellers countries such as US, NL had created big problem for their future, current policy changes wont make things better in short term either. Chinese fellows know this well and with cutting further they strengthen their position.
Environment policy could be an issue of mining rare earth material. Labor cost could be another. Extraction method could also be one of the many contributors that makes China becomes the leader of rare earth export. Policy makers have to act fast to ensure the leading position of US in this area.