As a strategic power play continues, China reportedly plans to curb rare earth magnet exports to the US military while easing supply for civilian tech firms.
China is reportedly preparing a new system to block the US military from obtaining rare earth magnets, even as it moves to ease shipments to American companies producing electronics and consumer goods.
According to a Wall Street Journal report, Beijing is developing a ‘validated end-user’ programme that would speed up exports to approved civilian firms in the United States while cutting off supplies to defence contractors.
The plan would allow President Xi Jinping to uphold his promise to President Donald Trump to ease trade restrictions, without aiding the American military.
Rare earth materials are crucial for manufacturing advanced technologies, including smartphones, electric vehicles (EVs), and defence equipment such as the F-35 fighter jets and drones. China dominates the global rare earth sector, controlling around 70% of mining and 90% of processing.
Reports predict that if implemented, the new export system could complicate operations for US companies with both civilian and defence contracts, including major automakers and aerospace firms.
However, Washington has not yet commented on the reported plan, and Beijing has not specified which US firms might qualify for fast-track export licences.
The proposed system reportedly mirrors elements of US export control mechanisms. China has tightened control over rare earth exports in recent years amid growing trade tensions with Western nations. Before a recent trade truce, Beijing announced new licensing rules for foreign buyers of products containing Chinese rare earths, causing supply chain disruptions.
Although China agreed to delay those rules by one year after the Trump–Xi meeting, industry experts remain uncertain about Beijing’s long-term commitment to easing restrictions.
Meanwhile, the US is moving to diversify its rare earth supply. President Trump recently signed agreements with Kazakhstan and expressed interest in developing mineral resources in Greenland and Ukraine to reduce dependency on Chinese sources.
