China has imposed sweeping export controls on rare earth elements, a critical move in its escalating trade war with the United States. The restrictions, announced late Friday, target 17 key minerals essential for defense, electronics, and green energy technologies—tightening Beijing’s grip on global supply chains.
The decision comes in retaliation to President Trump’s steep tariff hikes on Chinese goods, which now reach up to 54%. China, which produces 90% of the world’s rare earths, has now placed seven medium and heavy rare earths—including dysprosium, terbium, and yttrium—under strict export licensing. While not a full ban, the move allows Beijing to throttle shipments at will, disrupting industries from aerospace to electric vehicles.
Key Impacts:
US Defense & Tech at Risk: Companies like Lockheed Martin, Tesla, and Apple rely on Chinese rare earths for critical components.
No Easy Alternatives: The US has just one operational rare earth mine and depends on China for processing.
Global Supply Chain Shock: Even non-US firms face shortages as China’s controls apply worldwide.
“China is strategically targeting America’s weak spots,” said Mel Sanderson of American Rare Earths. “They picked minerals crucial for US national security and tech dominance.”
Western Scramble for Solutions
US stockpiles are insufficient for long-term defense needs.
Brazil’s Serra Verde mine, the only major non-Chinese source, still ships minerals to China for refining.
Startups like Phoenix Tailings are racing to scale rare earth recycling, but full independence could take years.
“This is China’s opening salvo,” warned Nathan Picarsic of Horizon Advisory. “They’re willing to escalate further.”