China Keeps Rare Earth Curbs on U.S. Despite 1-Year Pledge as Magnet Exports Fall Since October
Updated
Updated · POLITICO · Jun 1
China Keeps Rare Earth Curbs on U.S. Despite 1-Year Pledge as Magnet Exports Fall Since October
5 articles · Updated · POLITICO · Jun 1
U.S. defense supply-chain advisers say China’s promised November rollback of rare earth export restrictions has not materialized, with key materials such as yttrium still not flowing to U.S. companies.
Chinese trade data backs that up: magnet exports to the U.S. have been falling since October, suggesting the shortfall is driven more by policy than by normal supplier diversification.
The gap persists despite last month’s Trump-Xi summit, after which Washington said Xi agreed to address shortages while Beijing said only that both sides would explore solutions.
U.S. officials say shipments have improved somewhat and have given Beijing a passing grade, but analysts and industry experts argue the slow pace looks deliberate as China signals leverage over critical defense and manufacturing inputs.
The uncertainty is growing more consequential as U.S. demand rises for munitions restocking and new programs such as the Golden Dome missile-defense system.
As conflict with Iran escalates, how does China's rare earth monopoly threaten US military readiness?
Why pause Taiwan's arms sales while the defense budget targets China's strategic dominance?
Breaking China’s Grip: The Global Race to Secure Rare Earth Supply Chains After 2025 Export Controls
Overview
As of June 2026, the global market is closely watching China's evolving export control policies, especially after strict measures on heavy rare earths and permanent magnets were imposed in April 2025 and expanded in October 2025. These controls have introduced significant volatility into global supply chains, as China continues to dominate rare earth mining and processing. New licensing regimes and potential licensing asymmetry add further uncertainty for international industries. Although recent diplomatic efforts, like the Trump-Xi Beijing summit, brought warm rhetoric and modest commitments, the specific impacts of China’s export controls on the global market remain unclear in the available information.