As the U.S.-China trade war intensifies, China has suspended exports of rare earth elements and rare earth magnets—critical components in global high-tech industries.
According to The New York Times on Sunday, the Chinese government ordered export restrictions on six types of refined rare earths and rare earth magnets on April 4. As a result, these materials can now only be shipped out of China with special export permits.
Rare earth metals are essential materials for producing advanced technologies such as automobiles, drones, robots, and missiles. The move is interpreted as retaliation against U.S. President Donald Trump’s imposition of reciprocal tariffs on China and numerous other countries.
Previously, China had announced export controls on rare earths and other key minerals, which were initially viewed as additional licensing procedures rather than a full ban.
However, the outlet reported that rare earth and magnet exports have now been suspended until China establishes a new regulatory system.
The new system could permanently block shipments to U.S. companies, including American defense contractors.
Meanwhile, U.S. firms have been stockpiling rare earths in preparation for such emergencies, but analysts predict that production disruptions will still be unavoidable.
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