According to the New York Times (NYT) on the 13th, the Chinese government ordered export restrictions on six rare earths and rare earth magnets refined from China on the 4th. As a result, rare earths and magnets can only be shipped out of China with special export permits.
The move is seen as retaliation for U.S. President Donald Trump’s imposition of mutual tariffs on China and other countries around the world on the 2nd. Earlier, China announced a control over the export of key minerals, including rare earths, which was accepted as the addition of an “export permit” procedure, not an export ban. However, Reuters said the move effectively stopped exports of rare earth items completely.
Exports of rare earths and magnets were halted until the Chinese government established a new regulatory system, according to the New York Times. The new system may permanently prevent supplies from reaching American companies, including American military companies.
Rare earths and magnets are essential for making high-tech products, from cars and drones, to robots and missiles. Rare earth metals are used to make various kinds of electric motors, which are key components of electric vehicles, drones, robots, missiles, and spaceships. Gas-fueled cars also use electric motors that use rare earth magnets for important tasks such as steering. They are also used in jet engines, lasers, car headlights, and chemicals that manufacture specific ignition plugs. They are also a key material for capacitors, an electrical component of computer chips that power artificial intelligence (AI) servers and smartphones.
This is likely to have widespread consequences. This is because U.S. companies that rely on Chinese rare earths will inevitably suffer a direct blow. The New York Times reported that although U.S. companies have rare earth reserves in case of an emergency, it is very difficult to predict when production will be disrupted because each company has various reserves.
EJ SONG
US ASIA JOURNAL
