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How energy, rare earth, and oil policies and payment systems are reshaping the global power structure

2026-05-05 19:18:23

The standard for measuring national power is no longer limited to military strength. Today, countries can influence or even dictate the course of international politics simply by leveraging trade routes, oil supplies, mineral resources, and payment systems, without resorting to direct military action.

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This shift clearly demonstrates that economic dependence has become a new type of strategic leverage. When a country controls key resources or facilities that are difficult for other countries to easily replace, it can gain strong international influence and achieve its political goals even without resorting to military force.

Energy becomes a core tool for exerting pressure.

The energy sector remains the most direct manifestation of economic leverage. Russia has used Europe's heavy dependence on its natural gas as a key tool for exerting political pressure; while the case of the Strait of Hormuz fully illustrates that a narrow shipping route can directly affect the stability of global oil supply.

When energy flows are disrupted, the impact can spread rapidly across the globe through channels such as inflation, rising transportation costs, and market sentiment fluctuations. This transforms oil and gas infrastructure from mere commercial assets into strategic locations contested by nations and key bargaining chips for exerting pressure.

Rare earth elements pose supply chain risks

Rare earth elements are core raw materials for the production of smartphones, electric vehicles, defense systems, and various advanced technology products, and their strategic value is self-evident. China's dominant position in rare earth refining gives it an irreplaceable advantage in the global supply chain.

Even minor adjustments to China's rare earth export rules or licenses can create significant uncertainty for global manufacturers. This advantage in resource processing can translate into a powerful geopolitical tool in trade frictions or diplomatic disputes, becoming a crucial support for China in safeguarding its own interests.

Oil power is becoming fragmented

For a long time, OPEC has played the role of a "regulator" in the global oil market by coordinating the oil supply of its member countries, and has had a significant impact on global oil price trends. However, the UAE's withdrawal signifies that the organization is gradually deviating from its traditional centralized management model.

If oil-producing countries no longer prioritize the overall interests of the organization but instead place their own fiscal revenue above all else, neglecting internal discipline, the predictability of the global oil market will decline significantly. This will not only exacerbate price volatility in the oil market but also make energy prices more sensitive to various political signals, further increasing uncertainty in the global energy market.

The payment system has become the throat of finance.

SWIFT remains one of the most important networks in the global financial sector. It connects banking institutions around the world, provides core support for global trade payments, and is a key infrastructure for the normal operation of the global financial system.

When a country is excluded from this system, its ability to participate in international trade is severely limited, and it may even fall into the predicament of "financial isolation." Therefore, access to the mainstream global payment system has become a key focus of global geopolitical competition, prompting more and more countries to explore the establishment of alternative payment systems to reduce their dependence on the existing system.

Globalization is underway.

The world today is not in a process of complete "de-globalization," but is undergoing a profound structural reorganization, with the connotation and form of globalization undergoing fundamental changes.

Countries are gradually reducing their reliance on purely low-cost supply chains and placing greater emphasis on supply chain security. Europe is actively promoting energy diversification to reduce dependence on a single energy source; the United States and Australia are vigorously developing mineral resource production capacity to ensure the supply of raw materials for their high-end manufacturing industries; and China is actively promoting the internationalization of the RMB and expanding its use in global trade and payments.
Risk Warning and Disclaimer
The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.

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