China's Rare Earth Export Curbs: A Global Impact

China has imposed export restrictions on rare earth elements as a countermeasure to U.S. tariffs. This move could significantly impact global supply chains, particularly for industries reliant on these minerals, such as electronics and electric vehicles.

In a strategic move, China has placed export restrictions on rare earth elements, which are crucial for industries ranging from electronics to electric vehicles. This decision comes as a response to U.S. tariffs imposed by President Donald Trump, potentially affecting the global supply of these essential minerals.

China, being responsible for around 90% of the world's refined rare earth production, predominantly supplies the United States with these minerals. The recent measure involves placing several categories of medium and heavy rare earths, such as samarium and yttrium, on an export control list starting April 4.

The impact of China's restrictions extends globally, demonstrating its power over the mining and processing sectors. While the controls stop short of a complete ban, they limit export licenses, a tactic previously used with antimony exports to the EU.

(With inputs from agencies.)