As trade tensions between the United States and China intensify, Beijing has suspended the export of several key rare earth elements, magnets, and metals—components critical to industries ranging from defense to consumer electronics. The move, reported by The New York Times, underscores China’s strategy to weaponize its dominance over rare earth supply chains amid the ongoing trade war.

China produces about 90% of the world’s rare earth elements—17 metals vital for technologies like electric vehicles, missiles, semiconductors, and AI hardware. Beijing’s latest export controls cover heavy rare earths like samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related products. These are now subject to stringent licensing, with shipments at several ports already halted.

The crackdown is seen as retaliation for U.S. tariff hikes, and while not an outright ban, Beijing is leveraging slow or limited licensing to throttle supply. Analysts warn this could paralyze global supply chains, as most nations, including the U.S., have limited domestic production or reserves. American companies such as Lockheed Martin, Tesla, and Apple, all of which rely on Chinese rare earths, face serious disruption.

The U.S. has only one rare earth mine and limited stockpiles, inadequate for long-term needs, especially for defense contractors. China's move doesn't only impact the U.S.; the new rules apply globally, making it harder for industries worldwide to secure essential materials for electric motors, drones, jet engines, lasers, and smartphones.

David Merriman of consultancy Project Blue emphasized that China also controls indirect supply routes via Myanmar and Laos. The suspension highlights China’s leverage in the tech and defense race, and as its new regulatory system takes shape, the global impact on manufacturing and innovation could be profound, potentially shifting strategic alliances and industrial policy worldwide.

As trade tensions between the United States and China intensify, Beijing has suspended the export of several key rare earth elements, magnets, and metals—components critical to industries ranging from defense to consumer electronics. The move, reported by The New York Times, underscores China’s strategy to weaponize its dominance over rare earth supply chains amid the ongoing trade war.

China produces about 90% of the world’s rare earth elements—17 metals vital for technologies like electric vehicles, missiles, semiconductors, and AI hardware. Beijing’s latest export controls cover heavy rare earths like samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related products. These are now subject to stringent licensing, with shipments at several ports already halted.

The crackdown is seen as retaliation for U.S. tariff hikes, and while not an outright ban, Beijing is leveraging slow or limited licensing to throttle supply. Analysts warn this could paralyze global supply chains, as most nations, including the U.S., have limited domestic production or reserves. American companies such as Lockheed Martin, Tesla, and Apple, all of which rely on Chinese rare earths, face serious disruption.

The U.S. has only one rare earth mine and limited stockpiles, inadequate for long-term needs, especially for defense contractors. China's move doesn't only impact the U.S.; the new rules apply globally, making it harder for industries worldwide to secure essential materials for electric motors, drones, jet engines, lasers, and smartphones.

David Merriman of consultancy Project Blue emphasized that China also controls indirect supply routes via Myanmar and Laos. The suspension highlights China’s leverage in the tech and defense race, and as its new regulatory system takes shape, the global impact on manufacturing and innovation could be profound, potentially shifting strategic alliances and industrial policy worldwide.