Chinese communist part announces plans to reduce rare earth exports to the US
The country´s aim is to hit the United States with an export embargo.
Frank MeyerOctober 4, 2026
China is considering restricting exports of rare earths, which are vital for U.S. defense companies like Lockheed Martin to manufacture advanced weapons and F-35 fighter jets, the Financial Times reported Tuesday. Industry executives said government officials asked how badly US and European companies would be affected if China curtailed rare earth exports during a bilateral dispute, the FT reported. China currently accounts for 70% of the world's rare earth production and controls 90% of the world market of $ 4 billion. "The government wants to know if the US could have problems manufacturing F-35 fighter jets if China imposes an export ban," the Financial Times reported, quoting a Chinese government adviser. The specter of export restrictions emerged in 2019 amid a deepening trade war as Beijing prepared a plan to restrict supplies to target Washington. While these restrictions never materialized, the US government was pressured to find ways to reduce its reliance on a single source of supply. "The signs have been pointing towards a storm for decades, and now we see firsthand why we have sounded the alarm that China's dominance over the rare earths and critical minerals industry is a highly volatile geopolitical problem," said Pini Althaus, US CEO Rare Earth. "This move, when it comes into effect, would go beyond the Communist Party's 'Made in China by 2025' and 'Belt and Road' initiatives - both of which are tools for China's continued dominance as a global manufacturer and exporter of manufactured goods - and would rather aim at arming the export of rare earths, as China has done before. " Donald Trump signed an executive order last year aiming to expand domestic rare earth production a year after the Department of Defense was ordered to ramp up magnet production. The US also placed an order with Lynas Rare Earths, the largest producer outside of China, to increase processing capacity. The facility, which is expected to produce approximately 5,000 tons of rare earths annually, would support Washington’s push to secure domestic supplies of essential minerals used in magnets and motors that make phones, wind turbines, electric vehicles and military equipment drive. President Joe Biden, in his first meeting as president with Chinese leader Xi Jinping, spoke of his concerns over Beijing's "compulsive and unfair economic practices" and human rights violations in the Xinjiang region. Despite their name, the 17 minerals that are grouped under the name rare earths are not rare. According to the US Geological Survey (USGS), they're about as common as copper. However, because rare earth ores oxidize quickly, their extraction is both difficult and extremely harmful to the environment.
