China has intensified its control over the global supply of rare earth elements — vital inputs for defence, aerospace, and advanced manufacturing — through the extension of export restrictions. The move underscores how deeply the world’s industrial and military complexes rely on Chinese-sourced critical minerals.

Experts warn that the tightening curbs pose a serious risk to global defence industries already under strain from geopolitical rivalries. Neha Mukherjee, Research Manager at Benchmark Mineral Intelligence, described the development as a looming crisis.

“Basically everyone is dependent on China for a standing army because of the wide use of these minerals in defence, and we are days if not weeks away from a crisis,” she told ANI.

Mukherjee explained that while the new measures do not constitute a complete ban, their impact is extensive. Heavy rare earths, in particular, are crucial in manufacturing sophisticated military hardware. “A single F-35 fighter jet uses over 400 kilograms of rare earths, while a submarine consumes about 4.6 tonnes,” she noted, illustrating the strategic depth of dependence.

The export restrictions include licensing requirements for seven medium and heavy rare earth elements that China classifies as strategically sensitive.

These minerals are employed not only in electronics and electric vehicles but also in precision-guided munitions, radar systems, and aircraft engines. The new rules also extend to re-imported materials and products that incorporate Chinese raw inputs, adding another bureaucratic layer to an already complex supply chain.

Mukherjee emphasised that the timing of the curbs carries significant geopolitical weight. The decision coincides with President Donald Trump’s upcoming East Asia tour, which includes a critical meeting with Chinese President Xi Jinping in South Korea. “It is very strategically timed, just weeks before the two presidents are supposed to meet, because critical minerals are on the leverage table,” she observed.

Following months of escalating trade tensions, China’s Ministry of Commerce introduced the licensing scheme in April, affecting metals essential to semiconductors, EV batteries, and defence-grade alloys. 

While exporters can still apply for licences, approval delays have disrupted shipments and halted several production lines worldwide. “Technically it is not a ban, but on the ground, the situation feels like one,” Mukherjee said, citing widespread bottlenecks.

The latest amendment to China’s export list broadens the scope even further. Companies using re-imported materials processed abroad now require additional permissions. The rules also appear to touch upon joint ventures and intellectual property transfers, preventing foreign defence firms from freely utilising technologies that originate in China.

Analysts view these developments as part of Beijing’s broader strategy to reinforce its leverage in global trade and military-industrial supply chains. With nearly 95 per cent of rare earth processing capacity located in China, the export curbs effectively hand Beijing a potent tool to influence international defence readiness.

As governments scramble to secure alternative sources — such as Australia, the United States, and India — the current disruptions have already sparked stockpiling drives and policy reviews. Mukherjee concluded that China’s dominance over critical minerals remains unmatched, a dominance that continues to shape the geopolitical and industrial balance of power.

Based On ANI Report