China Rare-Earth Rules Heighten U.S.-China Trade Tensions

Beijing's new rare-earth export rules could curtail shipments used in foreign military production, intensifying geopolitical and trade frictions.
Analysts say the measures target materials critical to defence and high-tech supply chains, and come as investors watch closely ahead of the Chinese Communist Party's 4th Plenum.
In Washington, a planned 100% tariff increase has been postponed until November 1, a delay seen by some observers as an effort to avoid adding pressure during China's political meeting.
Rare-earth elements are essential for permanent magnets, guidance systems, and advanced electronics, and U.S. reliance on Chinese processing capacity remains a strategic vulnerability.
Policymakers and industry players are racing to secure friendly, diversified sources — reopening mines, investing in processing, and building alliances with other producers.
Markets have shown short-term jitteriness, but longer-term implications point to accelerated efforts in the U.S. and allied countries to reduce dependence on a single supplier and to bolster domestic and allied industrial capacity for critical materials.