Some Chinese companies suspend rare earth metal exports to the United States
Some Chinese producers of rare earth metals have halted supplies to the United States despite holding export licenses. OilPrice reports, citing informed Reuters sources.
According to Reuters sources, some Chinese suppliers have refused to export rare earth metals to the United States since the beginning of August. One reason is concern over possible repercussions from Chinese authorities.
China's countermeasures
At the beginning of August, China announced the inclusion of the Responsible Business Alliance (RBA), the organization behind the Responsible Minerals Initiative (RMI) and its RMAP assessment, as well as labor rights organization Verité, on its countermeasures list.
As one Reuters source said, Chinese companies fear punishment for following RMI recommendations and due diligence procedures. Other firms, despite having licenses, are avoiding exports to the United States because they do not want to become involved in the geopolitical confrontation and unpredictable trade policies of the two countries.
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Summit in Washington
The new stage of tensions over rare earth metals is unfolding several weeks before the expected visit of Chinese President Xi Jinping to Washington for a summit with US President Donald Trump at the end of September.
In a July report, the International Energy Agency noted that the global market for critical minerals remains largely concentrated in leading supplier countries, with China leading in the extraction and processing of many metals. According to the IEA, the Chinese government introduced significant export restrictions on heavy rare earth elements last year.
The expanded restrictions are suspended until November 2026. The IEA estimates that their full implementation, should China decide to proceed, could put at risk annual production outside China worth about $6.5 trillion in the automotive, high-tech, defense and energy sectors.
