China halts exports of rare earths and magnets, which are essential for making semiconductors, robots, drones, cars, etc., as part of retaliation against Trump tariffs
In April 2025, the Chinese government suspended exports of important rare earth elements and magnets as a retaliatory measure against the US's tightening tariffs. This measure threatens the global supply of materials that are vital to the automotive, semiconductor and aerospace industries, causing major ripples in the US and many other countries.
China Halts Critical Rare Earth Exports as Trade War Intensifies - The New York Times
China Halts Rare Earth Exports to US, Threatening Supply Chains for Cars, Semiconductors, and Aerospace Industries | The Gateway Pundit | by Jim Hᴏft
https://www.thegatewaypundit.com/2025/04/china-halts-rare-earth-exports-us-threatening/
The trade war began with President Trump's 145% tariff on Chinese products . Meanwhile, China has imposed a 125% tariff on American products and introduced new restrictions on exports of six heavy rare earth metals, including dysprosium, terbium, and lutetium, and magnets that use them on April 4, 2025. These measures have exposed the vulnerability of the American industrial structure that relies on the supply of rare earth metals, and may also serve as an opportunity to reorganize the global supply chain.
by Brücke-Osteuropa
Restricted rare earth metals are essential for electric motors in electric vehicles, drones, robots, missiles, and spacecraft, and are also used in jet engines, lasers, smartphones, and AI servers. More than 90% of these rare earth metals are produced and refined in China, but regulations mean they cannot be shipped without a special export license. China has only just begun to develop this export license system, and industry participants are concerned about the length of time it takes to issue licenses.
At the time of writing, dysprosium oxide was trading at $204 per kilogram in Shanghai, China, and even more abroad. However, many U.S. companies have little inventory and have avoided stockpiling to keep costs down, so production could halt if the supply outage is prolonged. Meanwhile, some Japanese companies are said to be holding more than a year's worth of inventory, due to China's experience in 2010 when the country halted exports for seven weeks in response to the Senkaku Islands issue.
The Chinese government is also taking measures to ban transactions with US military-related companies, raising concerns about the impact on national security. James Litinsky, CEO of MP Materials, a US company that deals with rare earths, has pointed out that drones and robotics technology will be at the core of future wars, and has stated that there is a risk that the US military supply chain will be cut off. The Mountain Pass mine, America's only rare earth mine, is still in operation, and the company plans to begin commercial production of magnets in Texas by the end of the year.
by Tmy350
China's rare earth export restrictions are not merely an economic policy, but have a wide range of impacts, including geopolitical tensions between countries, restructuring of industrial structures, and environmental issues. Future trends will have a significant impact on the global economy and security, forcing the international community to respond.
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in Note, Posted by log1i_yk