What is the current status of China's rare earth export controls, and how are they affecting global supply chains?

China maintains tight export controls on specialty heavy rare earths—yttrium, dysprosium, and terbium—with exports down about 50% since April 2025 compared to the prior 12 months, according to Chinese customs data; these materials are critical for aerospace, defense, semiconductors, and high-performance magnets in electronics and electric vehicles, and their scarcity has caused production pauses at U.S. aerospace firms and forced White House intervention to secure export licenses for a major U.S. firm losing hundreds of millions monthly.

Did China fulfill its October 2024 commitment to eliminate rare earth controls, and what is the current diplomatic stance ahead of the Trump–Xi summit?

No—although China rolled back a wider set of restrictions after the October 2024 South Korea summit, it kept its April 2025 controls in place and continues to defend them, asserting it approves eligible export requests; ahead of the upcoming leaders' summit, both sides are discussing a possible extension of the October agreement, with U.S. officials confirming ongoing talks, mutual interest in stability, and no clarity yet on whether the truce will be extended during or after Trump’s visit.

ChemBrief

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US and Chinese leaders discuss extending a rare earth export truce, but Beijing maintains tight controls on specialty materials vital for defense and manufacturing. Global prices for these minerals have surged, causing shortages for allies and highlighting ongoing supply chain vulnerabilities.

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