China has suspended exports of a wide range of critical minerals and magnets, threatening to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world, Report informs via The Japan Times.
Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while the Chinese government drafts a new regulatory system.
Once in place, the new system could permanently prevent supplies from reaching certain companies, including American military contractors.
The official crackdown is part of China’s retaliation for President Donald Trump’s sharp increase in tariffs that started April 2.
China produces around 90 per cent of the world's rare earths, a group of 17 elements used across the defense, electric vehicle, energy and electronics industries.
Seven categories of medium and heavy rare earths, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium-related items, have been placed on the export control list. The United States has only one rare earths mine, and most of its supply comes from China.
Beijing placed export restrictions on rare earth elements on April 2 as part of a broader package of tariffs and company restrictions in retaliation for Trump's decision to hike tariffs against most Chinese products to 54 percent. The export curbs include not only mined minerals but permanent magnets and other finished products that will be difficult to replace, analysts said.
