Washington: As tensions in the trade war between the US and China rise, Beijing has halted the export of several critical metals, rare earth elements, and magnets. This move threatens to disrupt supplies to the West for essential components used in weapons, electronics, aerospace, automakers, semiconductor industries, and consumer goods.
According to a report from The New York Times, the Chinese government is drafting new export regulations. While these policies are being finalized, shipments of magnets, crucial for manufacturing a wide range of products, have already been halted at several Chinese ports. Once the new regulations are in place, they could potentially restrict supplies to certain companies, including American military contractors.
This suspension is part of China’s response to the trade war initiated by US President Trump. China controls around 90% of the world’s rare earth production, a group of 17 elements vital to the defense, electric vehicle, energy, and electronics sectors. Seven categories of rare earths, including samarium, gadolinium, and dysprosium, have been added to China’s export control list. The US, with only one rare earths mine, heavily depends on China for its supply.
The restrictions were implemented on April 2, following Trump’s decision to raise tariffs on Chinese imports by 54%. These measures cover not only raw materials but also finished products like permanent magnets, which are essential in various industries, making the ban particularly challenging for US manufacturers.
To further tighten controls, metals and magnets from China can now only be exported with special licenses. However, with China’s licensing system still under development, industry leaders are concerned that the process may delay shipments and deplete current supplies.
The metals affected are crucial for producing electric motors, including those used in electric vehicles, drones, robots, and missiles. They are also vital for jet engines, lasers, car headlights, and components of computer chips, which power smartphones and AI servers.