As the trade tensions between the US and China grew, China stopped exporting some important rare earth elements, such as metals and magnets. These materials are crucial for making weapons, electronics, cars, aeroplanes, semiconductors, and many everyday products used in the West.
According to a report by The New York Times, China is working on new rules for exporting these items. Until the new rules are ready, the export of magnets, which are used in everything from cars to missiles, has been paused at many Chinese ports. It is also being said, once China’s new export rules are finalized, they could permanently block some companies, including American military contractors, from getting important supplies.
This move is part of China’s response to US President Trump’s trade war. China produces about 90% of the world’s rare earth elements, a group of 17 special metals used in defence, electric cars, energy, and electronics. China has now added seven types of rare earth, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related items, to its export control list.
The US depends heavily on these imports because it has only one rare earth mine, and most of its supply comes from China. China officially started limiting rare earth exports on April 2. This is part of a larger set of trade actions in response to the US raising tariffs on most Chinese goods to 54%. Experts say the restrictions cover not just raw materials, but also finished products like magnets, making them harder to replace.
China had been hinting at this move for a while, and now it has finally taken action, raising trade tensions with the US. This has left American companies rushing to find new sources of important minerals they’ve depended on for years. According to a New York Times report, China will now only allow these metals and the magnets made from them to be exported if companies get a special license.
But there’s a problem:China’s system for giving out these licenses isn’t fully set up yet. This is making business leaders worried that the process could take a long time and that supplies of these minerals outside China might start to run low.
China’s new export rules don’t just target the US, they apply to every country. This shows how China is using its strong control over important minerals to influence global trade. China hasn’t completely banned these exports, but it is making them harder to get by giving out only a limited number of special export licenses. Big US companies like Tesla, Apple, and Lockheed Martin depend on these minerals to make their products.
The US does have some of these minerals saved up, but not enough to keep its defence industry going for a long time. China has already banned three metals from being sent to the US and added export controls on many others. The latest restrictions focus on heavy rare earth metals, which China controls even more closely.
An expert, David Merriman, said that outside of China, Myanmar, and Laos, there is only one major place that produces these heavy rare earths. And even in Myanmar and Laos, China is deeply involved in the supply chain.
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