Azernews.Az

By Alimat Aliyeva

The Chinese authorities have decided to suspend the export of certain rare earth metals and magnets amid an escalating trade war with the United States — a move that could significantly impact the global automotive, semiconductor, and aerospace industries, Azernews reports.

Chinese government is currently developing a new export control framework. In the meantime, it has halted shipments of heavy rare earth metals and specialized magnets — critical components for manufacturing electric vehicles, drones, and guided missiles — from many of its ports.

The New York Times reports that these measures could seriously disrupt production for several companies, including major U.S. military contractors, as well as manufacturers in Japan and Germany.

Although rare earth magnet exports make up only a small fraction of China’s total exports, analysts warn that the ripple effects could be profound for the countries that rely heavily on these materials. The U.S., in particular, is expected to feel the brunt of the impact due to its dependence on Chinese-sourced rare earths for defense and advanced technologies.

China currently controls over 70% of global rare earth production and processing — a dominant position that has often been described as a “strategic chokehold” on advanced manufacturing. While countries like the U.S., Australia, and Canada are scrambling to develop alternative supply chains, experts say it could take years to reduce dependence on Chinese rare earths.

This move may also accelerate international efforts to diversify rare earth sources, invest in recycling programs, and revive dormant mining operations — but until then, industries from EV makers to defense contractors may face delays, increased costs, or forced redesigns.