British News Agency

China has suspended the export of a wide range of critical minerals and magnets, threatening the supply of essential components for global car makers, aerospace manufacturers, semiconductor companies, and military contractors.

Shipments of magnets, which are vital for assembling everything from cars to drones, robots, and missiles, have been halted at many Chinese ports due to a draft regulatory framework. Once the new system is implemented, delivery of these materials to certain companies – including U.S. military contractors – could be permanently blocked.

The official operation is part of China’s response to the sharp tariff hikes announced by President Trump on April 2.

On April 4, the Chinese government imposed restrictions on the export of six heavy rare earth metals that are fully refined in China, as well as rare earth magnets, 90% of which are produced in China. These materials can now only be exported with special licenses.

However, China has not yet begun issuing the licenses, raising concerns among industry leaders about potential delays and decreased availability of minerals and products outside China.

If factories in Detroit and elsewhere run out of strong rare earth magnets, they may be unable to assemble electric vehicles and other products that rely on them. Since the size of emergency stockpiles varies among companies, predicting the timing of production disruptions is difficult.

The heavy rare earth metals covered by the suspension are used in magnets that are indispensable for many electric motors – including those in electric cars, drones, robots, missiles, and spacecraft. Even gasoline-powered cars use these magnets in electric motors for key functions such as steering.

The metals are also used in jet engines, lasers, car headlights, and certain spark plugs. Additionally, they are vital components in capacitors within computer chips that power AI servers and smartphones.