"A report published by the International Energy Agency this week noted that such "high market concentration" would leave global supply chains in strategic sectors such as energy, automotive, defense and AI data centers "vulnerable to potential disruptions." Earlier this month, Beijing tightened control over the rare-earth supply. Starting December 1, foreign companies anywhere in the world will need approval from the Chinese government to export products containing even trace amounts of rare-earth materials that originated in China or were produced using Chinese technology."
"The move came in response to the US expanding the list of Chinese firms denied access to most-advanced US semiconductor chips and other technologies. China's decision has stirred concerns over possible supply shortages that could disrupt production of other products such as electric vehicles, defense equipment and renewable energy systems."
"US Trade Representative Jamieson Greer criticized Beijing's new measures as "incredibly aggressive" and "disproportionate," while EU trade chief Maros Sefcovic called them "unjustified and harmful." Both the US and the EU are in talks with the Beijing to ensure adequate rare-earth supplies for their firm"
US-China trade tensions remain entrenched as both sides absorb economic pain to outlast the other. Rare earth elements have resurfaced as strategic commodities because China controls nearly 70% of mining and up to 90% of processing. The International Energy Agency warned that high market concentration leaves critical sectors such as energy, automotive, defense and AI data centers vulnerable to disruptions. Beijing implemented tighter export controls and a licensing regime, requiring foreign firms to obtain approval to export products containing trace amounts of China-origin rare-earth materials. The measures respond to US technology restrictions and raise concerns about shortages that could hinder electric vehicles, defense equipment and renewable energy deployment.
Read at www.dw.com
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