China holds the upper hand, producing at least 70% of the global supply and controlling 90% of the processing industry—no matter how much the U.S. and its allies lament it. In fact, over the past year and a half, China has used its dominance in rare earth elements as a tool to pressure rivals. On Dec. 21, 2023, Chinese President Xi Jinping restricted the export of some rare earth processing technologies—a move that turned out to be just the beginning.
China Has Completely Stopped the Export of Critical Rare Earth Elements
China delivered its latest blow to the U.S. on April 4. Just 24 hours after President Donald Trump announced plans to impose tariffs on most imports, China responded—and it did so forcefully. In early December 2024, Beijing banned the export of several critical minerals to the U.S., including three essentials to the chip industry: gallium, germanium and antimony.
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Ten days ago, the Chinese government added two more critical metals to its list of export restrictions: scandium and dysprosium. These chemical elements are less well known than gallium or germanium, but they’re just as important. They play a key role in the manufacturing of integrated circuits, telecommunications systems, and storage devices.
Now, barely a week and a half later, China has taken another step to control more than just chips and telecom—it’s also targeting electric vehicles, aerospace, and advanced weapons industries. According to The New York Times, in addition to halting exports of rare earths, China has effectively suspended the export of high-power magnets, which are critical to multiple global industries.
China announced the move on April 4. Now, Chinese authorities are holding up not only rare earth elements at ports across the country but also high-power magnets purchased by electric car manufacturers, aerospace firms, chip factories, and defense contractors.
Many of these organizations have stockpiles of rare earth magnets, but they may last only a few months. The U.S. and its allies are working to restructure the rare earth supply chain and reduce China’s leverage—but they’re unlikely to implement these changes quickly.
Image | Matthew de Livera (Unsplash)
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