China’s export restrictions on critical minerals, including rare earths, are a retaliatory tactic in the ongoing trade war with the US. However, experts say these measures have been ineffective and will become less so if the US responds by increasing domestic production or reducing dependence on these materials.
The restrictions began in July 2023, targeting gallium and germanium, essential for solar panels and semiconductors. Over time, China expanded its list of controlled products to include antimony, graphite, and other materials. In a recent escalation, China imposed stricter export controls on seven rare earth elements, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium.
Rare earths are not irreplaceable but are crucial for high-tech electronics. Companies may rely on existing stockpiles or recycled materials initially. However, the US and other countries will eventually need to increase domestic mining or reduce their dependence on rare earths to minimize China’s impact.
“China has one shot at this,” notes Ian Lange, associate professor of economics and business at the Colorado School of Mines. “If the US responds with increased domestic production, it would make China’s policies less effective.”
Source: https://arstechnica.com/science/2025/04/sadly-for-china-rare-earth-elements-arent-actually-all-that-rare