Trump lied. Again. Delusional.
China REE export licensing will only be for civilian uses, monitored, 6 monthly renewals only if compliant. No onward selling. https://t.co/u6O9jzocwN pic.twitter.com/KNb8nLlOo7
— Kathleen Tyson (@Kathleen_Tyson_) June 13, 2025
The lie: pic.twitter.com/yRRuckj4HB
— Kathleen Tyson (@Kathleen_Tyson_) June 13, 2025
China has tightened its grip on rare earth exports, imposing strict licensing requirements that limit shipments to civilian use only. The new policy mandates six-month renewals, with compliance monitored at every stage. No onward selling will be permitted, ensuring that rare earth elements do not end up in unintended hands.
The restrictions are already causing ripples across global industries. Electric vehicle manufacturers, aerospace firms, and defense contractors rely heavily on rare earth elements like neodymium and dysprosium. With China controlling over 70% of global rare earth production, the new licensing regime threatens to choke supply chains and drive up costs.
The approval process is opaque. Exporters must now seek case-by-case approval from China’s Ministry of Commerce, a system described by industry insiders as a bureaucratic maze. Only a handful of licenses have been issued so far, primarily to European firms with documented civilian applications. Military-linked or dual-use products are being denied outright.
Western manufacturers are scrambling for alternatives. Tesla, Ford, and Lockheed Martin have flagged concerns over access to key components, particularly NdFeB magnets, which are indispensable for electric traction motors, aerospace actuators, and advanced guidance systems.
Sources:
https://english.www.gov.cn/news/202506/12/content_WS684ac610c6d0868f4e8f34aa.html
