China has reportedly suspended exports of vital minerals and magnets, triggering concerns of widespread disruptions for global industries ranging from automotive and aerospace to semiconductors and defense. The move, seen as retaliation for escalating US tariffs, threatens to choke off supplies crucial for manufacturing a wide array of products, including cars, drones, robots, and missiles.
According to a report by The New York Times, the export halt primarily affects rare earth magnets , essential components that are used in numerous electronic and mechanical systems. The report claims that shipments have been stopped at Chinese ports as the government develops a new regulatory system, which could potentially block supplies to specific companies, particularly US military contractors.
Rare materials on way to US now require special export licenses from China
This crackdown follows China’s April 4 order wherein it restricted the export of six heavy rare earth metals and rare earth magnets, nearly 90% of which are produced in China. These materials now require special export licenses, but the licensing system is not yet fully operational, causing anxiety among industry executives about prolonged delays and potential supply shortages.
The suspended heavy rare earth metals are reportedly crucial for electric motors used in electric vehicles, drones, robots, missiles and spacecraft. They are also essential in manufacturing jet engines, lasers, car headlights, and capacitors for computer chips used in AI servers and smartphones.
Last year, a report by news agency Reuters said that China banned exports of key minerals to the US after the US announced export restrictions on 140 Chinese companies and stricter controls on chipmaking equipment.
China banned the export of minerals like gallium, germanium, and others.
“In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” the ministry was quoted as saying.
According to a report by The New York Times, the export halt primarily affects rare earth magnets , essential components that are used in numerous electronic and mechanical systems. The report claims that shipments have been stopped at Chinese ports as the government develops a new regulatory system, which could potentially block supplies to specific companies, particularly US military contractors.
Rare materials on way to US now require special export licenses from China
This crackdown follows China’s April 4 order wherein it restricted the export of six heavy rare earth metals and rare earth magnets, nearly 90% of which are produced in China. These materials now require special export licenses, but the licensing system is not yet fully operational, causing anxiety among industry executives about prolonged delays and potential supply shortages.
The suspended heavy rare earth metals are reportedly crucial for electric motors used in electric vehicles, drones, robots, missiles and spacecraft. They are also essential in manufacturing jet engines, lasers, car headlights, and capacitors for computer chips used in AI servers and smartphones.
Last year, a report by news agency Reuters said that China banned exports of key minerals to the US after the US announced export restrictions on 140 Chinese companies and stricter controls on chipmaking equipment.
China banned the export of minerals like gallium, germanium, and others.
“In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” the ministry was quoted as saying.
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