China has abruptly suspended exports of critical rare earth minerals and high-powered magnets—materials vital to the global tech, automotive, aerospace, and military industries.
In the US-China trade war, Beijing needs to stay ahead of the competition. This surprising move threatens to disrupt international manufacturing and security operations as countries scramble to find alternative suppliers.
Rare Earths: The Backbone of Modern Technology
According to The New York Times, China dominates the global rare earth market, producing nearly 90% of the world's supply of these 17 essential elements.
Rare earths are critical to the development of electric vehicles, smartphones, renewable energy technologies, advanced robotics, and military hardware such as missiles and drones.
Among the rare earths now restricted are samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related compounds. These elements are particularly hard to source and refine, making China's export halt a direct threat to global production capabilities.
Export Crackdown Hits US and Allied Industries
The new export controls come in response to a sharp tariff hike imposed by former US President Donald Trump, which took effect on April 2.
In retaliation, Beijing introduced sweeping export restrictions on key minerals, magnets, and advanced materials. The measures target both raw materials and finished products, making it even harder for companies to find quick replacements.
Many Chinese ports have already halted shipments of these materials, as Beijing crafts a long-term regulatory framework.
Once finalized, this new system could permanently block exports to certain foreign companies, including US military contractors and tech manufacturers.
Supply Chain Disruption Looms for Auto and Semiconductor Giants
From Tesla to Boeing, and from chipmakers to renewable energy developers, a wide array of industries could feel the pressure.
Permanent magnets, in particular, are indispensable for electric vehicle motors, aircraft systems, and industrial automation.
Analysts warn that the US and other Western nations lack sufficient domestic production to meet demand. America currently operates just one rare earth mine, with most of its supply still dependent on Chinese exports.
DigiTimes reported that the rare earth export controls also threatened semiconductor manufacturers in South Korea.
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Originally published on Tech Times
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