China plans to block rare earth shipments to US – Business News
China is reportedly crafting a plan to block the US army from getting shipments of rare earth magnets – even because it eases restrictions on shipments to US firms making electronics and different client items.
Beijing has repeatedly used its near-monopoly over rare earth metals – essential to make every part from iPhones to army {hardware} like F-35 fighter jets and drones – in tense tariff talks with the Trump administration.
Beijing is planning a “validated end-user” system that fast-track shipments for accredited civilian companies within the US, the Wall Street Journal reported, citing sources aware of the plan. It would permit China’s President Xi Jinping to keep his promise to President Trump about easing exports whereas slicing out army contractors.
Rare earths are needed to construct army {hardware} like F-35 fighter jets. by way of REUTERS
If it’s enacted, the plan may trigger ongoing complications for US firms that make “dual use” merchandise or have each civilian and army shoppers, resembling sure automakers and aerospace firms, in accordance to the report.
The White House didn’t instantly return a request for remark.
The Chinese authorities has but to specify which US firms will probably be thought-about eligible for basic licenses that may permit them to obtain shipments of rare earths.
The “validated end-user” system is alleged to be modeled on US export controls.
China, which controls about 70% of international rare earth mining and about 90% of processing capabilities, has steadily cut off entry in recent times amid rising tensions with the West.
China has a monopoly over rare earth processing and mining. REUTERS
Before placing a commerce truce with Trump, China briefly sparked chaos in international provide chains final month by asserting overseas entities would need to receive particular licenses starting Dec. 1 to export merchandise containing more than 0.1% of rare earth metals and magnets originating in China.
After Trump and Xi reached a deal, China stated it could delay these measures by one 12 months.
The White House that China’s pledge to difficulty basic licenses for exports marked the de facto finish of its earlier restrictions. However, Reuters reported final week that industry insiders have been skeptical that China would back off as a lot because the administration hoped.
President Donald Trump greets Chinese President Xi Jinping earlier than a bilateral assembly on the Gimhae International Airport terminal, Thursday, October 30, 2025, in Busan, South Korea. White House/News Pictures/Shutterstock
Meanwhile, the Trump administration has moved rapidly to develop rare earth sources exterior of China – by means of investments each inside and outdoors the US.
Earlier this month, Trump introduced a vital minerals deal with the federal government of Kazakhstan. He has additionally acknowledged a need to faucet into deposits positioned in Greenland and Ukraine.
