China Manoeuvre to Get Back at the U.S.

Team Veye | 16-Apr-2025

China putting exports restrictions on a wide range of critical minerals and magnets has the potential to restrict supplies of components vital to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.

According to a report by the Center for Strategic and International Studies (CSIS), although these new steps fall short of a full ban, it can lead to a temporary halt in exports, causing significant disruption to US firms reliant on rare earth inputs.

Besides leading to a pause in exports till the Chinese government establishes its licensing system, it can also create disruptions in supply to some U.S. firms since the announcement also placed 16 U.S. entities on its export control list, limiting them from receiving dual-use goods.

Several countries have been actively trying to diversify their supply chains to reduce dependence on China. Australia can play a significant role in mitigating this impact by becoming a major producer of rare earths itself. Australia's Lynas Rare Earths is already the largest non-Chinese producer. Australia is known to have abundant rare earth reserves.

(Source - CSIS, Reuters)

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