U.S. officials have voiced sharp criticism of China’s recent move to tighten restrictions on exporting rare‑earth minerals, calling it a “supply‑chain power grab” that threatens global technology markets. The U.S. and other nations see China as the biggest player for these vital minerals, used in everything from smartphones to jet engines and electric‑vehicle batteries.
China’s move comes after the country diverted more than 120,000 tons of rare‑earth ore to its own industrial giants in 2023, a 15 percent jump from the previous year. U.S. trade officials say the policy hinders firms that rely on a steady flow of rare‑earth supply. “We’re worried about security and economic stability,” said a senior U.S. Commerce Department official in a briefings after the new rules were announced. “China’s actions jeopardise the entire global supply chain.”
The U.S. has long warned that rare‑earths are a national‑security issue. In early 2024, the Office of the U.S. Trade Representative urged Beijing to provide clearer export licensing rules and to avoid “unilateral” restrictions that could hurt American companies and allies. The U.S. also announced a new push to diversify supply, including new mining projects in Canada, Australia and Africa.
China said it is responding to rising domestic demand for rare‑earths and wants to maintain responsible mining and environmental standards. “We aim to protect our people’s livelihoods,” a spokesperson for the Chinese State Council said. “Our policies are compliant with national security interests and global commitments.”
Experts warn that this tug‑of-war could slow the rollout of green technology worldwide. According to the International Energy Agency, 86 percent of the world’s lithium‑ion battery production depends on rare‑earths sourced from China. A reduction in supply could delay the shift to electric vehicles and renewable energy storage.
The United States is urging its trading partners to explore alternative sourcing routes or invest in domestic rare‑earth recycling. “We need to ask: who will provide the next wave of rare‑earth production if China backs away?” the Commerce official asked. “The answer has to be a balanced, transparent supply chain.”
At the same time, Beijing has assured diplomats that it will not impose blanket bans. Yet it remains protective of the market, promising stricter inspections and increased export tariffs for non‑critical uses.
In a rapidly evolving global supply‑chain landscape, U.S. officials are sounding the alarm: China’s new export curbs could slough off reliability and erode confidence in critical‑mineral security. The world will be watching how the two superpowers navigate this high‑stakes minebust to keep technology production moving.
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