China’s Rare Earth Export Curbs Reveal Precision Strike Capabilities-Complacency Is No Longer an Option

Highlights

• China has imposed targeted export restrictions on seven key rare earth elements, demonstrating advanced control over critical mineral supply chains.
• The new restrictions are more sophisticated than previous measures, using licensing mechanisms that make evasion difficult and compliance traceable.
• The U.S. remains vulnerable due to lack of strategic mineral stockpiles and limited domestic rare earth processing capabilities.

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China’s latest round of rare earth export restrictions—announced April 4 and targeting seven key elements used in advanced magnet production—marks a sharp escalation in the country’s ability to weaponize its dominance in critical minerals. According to an analysis (opens in a new tab) published in the Financial Times, these restrictions are not just about raw materials, but about controlling the global flow of specialized rare earth products vital to electric vehicles, wind turbines, and U.S. defense systems including the F-35 fighter jet.

Unlike past supply threats that were undercut by smuggling or market substitution, this iteration is more sophisticated, enforced via licensing mechanisms on finished goods, making evasion harder and compliance traceable. As industry analysts note, this affects medium and heavy rare earths like dysprosium—materials for which global alternatives may take years to develop.

While a temporary tariff rollback deal between China and the Trump administration may ease short-term pressure, the underlying threat architecture has already shifted. Beijing now holds a tighter grip on a narrower bottleneck that aligns military utility with industrial leverage. The U.S., by contrast, remains exposed: it lacks strategic mineral stockpiles, has made only modest progress on domestic rare earth processing, and continues to approach supply chain resilience as a policy discussion rather than a mobilization priority.

The Financial Times rightly warns that a direct conflict over minerals is no longer theoretical. China’s “dual-use” export policy tools have matured. The only real uncertainty left is whether the West is prepared to treat rare earths not as a trade topic, but as a frontline in geoeconomic strategy.  Rare Earth Exchanges (REEx), launched at the end of 2024, continues to raise the alarm.  Visit the REEx Forum (opens in a new tab) to discuss.