China's Rare Earth Curbs Threaten U.S. Defense Supply

China announced export controls barring rare earth materials from use by foreign militaries, a move that directly targets components central to modern weapons systems.
Rare earth magnets and alloys are critical to the F-35, Tomahawk missiles, Predator drones, submarines, radar arrays and precision-guided munitions. China currently dominates the sector, accounting for roughly 60% of mining and more than 90% of global refining, while the U.S. sources about 70% of its rare earth imports from China.
New rules require export licenses when Chinese-processed rare earths represent as little as 0.1% of a product's value, and for products relying on Chinese technology across mining, smelting, separation, magnet manufacture and recycling. Analysts warn strict, indefinite enforcement would be massively disruptive to defense, semiconductor and electric-vehicle supply chains and to firms from defense contractors to Apple, Nvidia, Intel, Tesla and major automakers.
Washington is accelerating efforts to onshore supply chains: the Defense Department struck a landmark agreement with U.S. miner MP Materials and investors are pushing rare-earth stocks higher on expectations of further deals. The restrictions raise leverage for Beijing ahead of an anticipated Xi-Trump meeting and increase the risk of renewed tariff escalation that could amplify economic and national-security fallout.