China started using more minerals as weapons in trade fights. They just limited how many rare earths they sold outside their country. This changed who could buy these important materials needed for making high-tech products like electric cars and military equipment.
Beijing announced these limits Friday after President Donald Trump imposed new taxes on Chinese goods. China makes almost 70% of all rare earths in the world, which include 17 different elements from the periodic table. Companies that work with these special minerals saw their stock prices jump Monday. China Rare Earth Holdings went up 10% in Hong Kong markets.
The US depends heavily on China for these supplies, which gives Beijing power in trade arguments. China already limited other special minerals during the past two years as trade fights heated up. They restricted gallium, germanium, graphite, and antimony when tensions rose between countries.
These new rules don't completely stop sales. They just make companies answer more questions about who buys the minerals and why they need them. Experience shows that when China adds these kinds of rules, exports often stop completely at first. Sellers must wait for official approval before they can ship anything.
This move worries many countries because rare earth metals help make phones, computers, clean energy technology, and defense systems. The world relies on these materials for modern living. China knows this gives them leverage in negotiations. Other nations have tried finding new sources, but China still controls most of the supply chain for these critical resources.
Beijing announced these limits Friday after President Donald Trump imposed new taxes on Chinese goods. China makes almost 70% of all rare earths in the world, which include 17 different elements from the periodic table. Companies that work with these special minerals saw their stock prices jump Monday. China Rare Earth Holdings went up 10% in Hong Kong markets.
The US depends heavily on China for these supplies, which gives Beijing power in trade arguments. China already limited other special minerals during the past two years as trade fights heated up. They restricted gallium, germanium, graphite, and antimony when tensions rose between countries.
These new rules don't completely stop sales. They just make companies answer more questions about who buys the minerals and why they need them. Experience shows that when China adds these kinds of rules, exports often stop completely at first. Sellers must wait for official approval before they can ship anything.
This move worries many countries because rare earth metals help make phones, computers, clean energy technology, and defense systems. The world relies on these materials for modern living. China knows this gives them leverage in negotiations. Other nations have tried finding new sources, but China still controls most of the supply chain for these critical resources.
