China Restricts Rare-Earth Exports, Global Supply Risks

China has announced sweeping export controls on rare-earth elements crucial to semiconductors, electric vehicles, solar panels and military systems.
The Commerce Ministry describes the measures as export management adjustments, but observers call them the most significant export curbs Beijing has imposed to date.
With roughly 90% of global rare-earth production concentrated in China, the restrictions heighten supply-chain risk for chipmakers, battery and turbine manufacturers, and defense suppliers.
U.S. officials say they are weighing responses ranging from tariffs to incentives for domestic mining, refining and strategic stockpiles, while the EU and Japan are expected to pursue coordinated diplomatic and industrial measures.
Analysts warn that prolonged controls could raise component costs, delay clean-energy deployments and create broader economic ripple effects.
The episode underscores the strategic vulnerability of concentrated mineral supply chains and strengthens the case for diversifying sources, expanding recycling and processing capacity, and investing in lower-impact extraction and materials-replacement research to support decarbonization goals.