China plans to block rare earth shipments to US military contractors: report | Latest Tech News
China is reportedly crafting a plan to block the US military from getting shipments of rare earth magnets – even as it eases restrictions on shipments to US firms making electronics and other client items.
Beijing has repeatedly used its near-monopoly over rare earth metals – essential to make the whole lot from iPhones to military {hardware} like F-35 fighter jets and drones – in tense tariff talks with the Trump administration.
Beijing is planning a “validated end-user” system that fast-track shipments for permitted civilian companies in the US, the Wall Street Journal reported, citing sources acquainted with the plan. It would permit China’s President Xi Jinping to keep his promise to President Trump about easing exports while cutting out military contractors.
Rare earths are needed to construct military {hardware} like F-35 fighter jets. via REUTERS
If it’s enacted, the plan might trigger ongoing complications for US firms that make “dual use” merchandise or have both civilian and military purchasers, such as sure automakers and aerospace firms, according to the report.
The White House didn’t immediately return a request for remark.
The Chinese authorities has yet to specify which US firms can be thought-about eligible for common licenses that will permit them to obtain shipments of rare earths.
The “validated end-user” system is said to be modeled on US export controls.
China, which controls about 70% of global rare earth mining and about 90% of processing capabilities, has steadily cut off access in latest years amid rising tensions with the West.
China has a monopoly over rare earth processing and mining. REUTERS
Before putting a commerce truce with Trump, China briefly sparked chaos in global provide chains last month by saying international entities would need to get hold of particular licenses starting Dec. 1 to export merchandise containing more than 0.1% of rare earth metals and magnets originating in China.
After Trump and Xi reached a deal, China said it could delay those measures by one yr.
The White House that China’s pledge to issue common licenses for exports marked the de facto end of its earlier restrictions. However, GWN reported last week that industry insiders had been skeptical that China would back off as a lot as the administration hoped.
President Donald Trump greets Chinese President Xi Jinping before a bilateral assembly at the Gimhae International Airport terminal, Thursday, October 30, 2025, in Busan, South Korea. White House/News Pictures/Shutterstock
Meanwhile, the Trump administration has moved shortly to develop rare earth sources exterior of China – through investments both inside and exterior the US.
Earlier this month, Trump announced a essential minerals deal with the federal government of Kazakhstan. He has also said a need to faucet into deposits positioned in Greenland and Ukraine.
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