China slaps limits on critical mineral exports: Western defense at risk
Photo: China has restricted exports of strategic minerals (Getty Images)
Beijing tightens controls on rare earths critical to the Western defense industry, according to WSJ.
Amid rising geopolitical tensions between the United States and China, Beijing has tightened export controls on supplies of rare earth metals needed by the Western defense industry.
China, which accounts for about 90% of the global market for such elements, has restricted the access of American manufacturers to key minerals, including germanium, gallium, antimony, and samarium.
According to a number of American companies, including Pentagon suppliers, export restrictions have already led to disruptions in supply chains and delays in the fulfillment of defense orders.
Prices for certain elements have increased tenfold: samarium, which is used in fighter jet engines, is being offered at 60 times the usual price.
According to Govini, more than 80,000 components used in US weapons contain elements under Chinese export control.
Dependence on supplies
Dependence on Chinese supplies covers almost all stages of the chain, from microelectronics production to guidance systems.
Defense contractors, including Lockheed Martin and Leonardo DRS, are already warning of the risk of production cuts.
Some companies, such as ePropelled, have delayed shipments for months.
Others are trying to establish cooperation with suppliers from Japan, Taiwan, and the United States, but they cannot quickly replace Chinese minerals because the market is narrow and capital-intensive.
The Pentagon, in turn, has announced its intention to completely abandon Chinese magnets by 2027.
Last month, it acquired a stake in MP Materials for $400 million, the largest rare earths producer in the United States.
The Department of Defense has also created the Critical Minerals Forum to stimulate investment in mining in the United States and partner countries.
China's advantages
Despite this, experts point out the complexity of the situation: some elements are economically profitable to mine only in China.
And new suppliers, such as Vulcan Elements or Phoenix Tailings, will not be able to provide stable supplies by the end of the year.
Against this backdrop, Beijing is demanding that Western importers disclose sensitive information, including product drawings and end users. According to industry representatives, this indicates China's intention to limit supplies for defense purposes.
The restrictions imposed by Beijing are already having consequences. For example, 55 tons of antimony transiting through China in April were detained by customs for three months, although the ore originated in Australia.
After the US State Department intervened, the cargo was released - but only to return to Australia.
Trump's tariffs
On April 2, 2025, US President Donald Trump announced that he had imposed tariffs on goods from all over the world.
As early as April 9, Trump put a pause on customs tariffs for a number of countries, except for China. The US President said that countries should conclude trade agreements with the US in 90 days.
Later, the US and China announced that they had agreed to a 90-day trade truce.
In addition, on July 28, it became known that the Trump administration had suspended new restrictions on technology exports to China in order not to complicate trade negotiations with Beijing.
The media also reported that the United States and China could extend the so-called tariff truce during the negotiations in Stockholm that began on July 28. The likely extension period will be at least 90 days.
