That 97% is of current production, not proven reserves.
And Lynas is opening an Oz mine which will be able to provide about 20% of world demand, Molycorp is reopening a California one with the same sort of volume. Silmet in Estonia has just been bought by Molycorp and they'll expand production there as well.
And that's just proven reserves. In terms of potential reserves, well, REs like Ce and La are about as abundant as copper. And we produce millions of tonnes of copper a year but only about 120,000 tonnes of REs.
This is a blip, a bubble, no more than that.
Quite seriously I was offered an abandoned African RE mine this morning. For the cost of filing the documents to reopen it.
If you want the point in the economic jargon the Chinese monopoly is a contestable monopoly. So, when they try to exploit that monopoly it gets contested and the monopoly fails.