China’s success in snarling global supply chains by stemming the flow of rare earths has piled pressure on Washington and made clear Beijing’s power to weaponise export controls on a wider range of critical goods, analysts and businesspeople say.
China dominates the supply chain for key minerals and its commerce ministry started requiring licences for exports of rare earths and related magnets in early April. The slow approval process has rocked global supply chains and given Beijing leverage over the US after Donald Trump’s sweeping “liberation day” tariffs.
There are now hopes more licences will be issued after Trump and China’s President Xi Jinping spoke on Thursday, paving the way for a new round of trade talks in London on Monday. On Saturday Beijing signalled a faster approvals process for some European companies.