China’s Rare-Earth Export Drag Raises Alarm in U.S., Threatens Global Supply Chains

by Worthy News Washington D.C. Bureau Staff

(Worthy News) – Despite a recent pledge to ease restrictions, China is delaying export approvals for rare-earth magnets—critical components used in electric vehicles, defense systems, and electronics—causing major disruptions for Western manufacturers, The Wall Street Journal reports.

Companies say shipments have slowed to a trickle, with license applications taking weeks or being denied. Ford has already halted SUV production due to shortages, and some companies are paying for costly air freight to keep factories running.

The delays follow China’s April crackdown on rare-earth exports, which came after President Trump raised tariffs. Although Beijing agreed to resume exports as part of a recent deal, companies say little has changed. Analysts describe the approval process as plagued by “bureaucratic drag,” with authorities demanding sensitive data, including customer lists and technical designs.

With China producing 90% of the world’s rare-earth magnets, the bottleneck has sparked warnings from industry groups in Germany and the U.S. that China is using the supply chain as leverage. While some firms explore alternatives, many say substitutes don’t meet performance needs, especially for automotive and high-tech applications.

“The system is slow and burdensome,” one U.S. importer told the Journal. “Factories are limping along.”

Latest Worthy News