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Home News

China Halts Exports Of Rare Earth Materials In Response To US Tariffs

It could now take as long as 45 days for rare earths to be shipped out.

by Newsdesk
April 15, 2025
China-Rare-earth-1

A rare earth mine located on the outskirts of Longnan, China. (Image: NYT)

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China has restricted its export of rare earth metals and magnets that are essential to several industries, including automakers, aerospace manufacturers, and military contractors. As China holds the monopoly on these materials – almost 90% of the world’s rare earth magnets are produced in the country – it’s a move that threatens industries globally.

Rather than a total ban of its export, the Chinese government instead imposed new restrictions on its rare earths and metals on 4 April, requiring a special license to ship the metals and magnets internationally. Unsurprisingly, this was done in retaliation to US President Trump’s reciprocal tariffs.

China-Rare-earth-2
(Image NYT.)

To make matters worse, the Chinese government has also reportedly been delaying the establishment of a system that issue said licenses, causing further strain among global industry executives. Additionally, its government is said to be drafting a new regulatory system that could permanently halt supplies from reaching certain companies. According to a source from The New York Times, an American company was notified that it could take up to 45 days for exports to resume.

It has been alleged that these restrictions have not been enforced in a standardised manner across Chinese ports. Some customs officials apparently permit shipments containing minor traces of heavy earth metals, provided they are being shipped to non-US markets. Meanwhile, other officials only permit exports after testing is conducted to ensure it complies with the new rules. 

Rare-earth-mine-1
(Image: Techspot.)

China’s monopoly in the production of rare earth materials stems from the rich deposits found near Longnan in the Jiangxi Province. While Japan and Germany also have a hand in its production, they are still dependent on Chinese raw materials. The halt of exports not only impacts the industries involved, but also damages China’s reputation as a reliable supplier, as warned by the chairman of the critical minerals advisory committee of the US Trade Representative and Department of Commerce, Daniel Pickard. 

(Sources: TechSpot, The New York Times)

Manisha contributed to this article.

Filed Under chinarare earth
Updated 3:12 pm, Tue, 15 April 25
https://lowy.at/y2i3q
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