

So long as there are big players releasing open weights models, which is true for the foreseeable future, I don’t think this is a big problem. Once those weights are released, they’re free forever, and anyone can fine-tune based on them, or use them to bootstrap new models by distillation or synthetic RL data generation.
The “cheap Chinese labor and lax laws” thing is not exactly the issue, at least not these days. The thing is that Chinese industry has spent decades working out how to refine these minerals, and they’re the only ones who are now able to do it at scale. So other countries that extract and process rare earths (which as noted aren’t actually that rare) often ship semi-processed ore to China for final processing.
Sure, other countries can replicate these capabilities if they’re willing to put in the effort. It’s like China’s challenge with EUV lithography, but in reverse. It will take significant time. Also, building up a rare earths processing industry probably involves not just spending capital, but also major environmental risks while you’re doing your trials.