A quiet but significant disruption is unfolding in global trade as China halts the export of seven key rare earth elements. This freeze, triggered by new export control measures, was announced last week.
According to multiple sources familiar with the matter, China stopped shipments of the affected rare earths on April 4. The move followed Beijing’s decision to place export controls on these materials, seen as a retaliatory measure in response to U.S. tariffs imposed under former President Donald Trump.
Exporters must now apply for licenses from China’s Ministry of Commerce to move these materials out of the country. This process, insiders say, is notoriously opaque and slow, ranging anywhere from six or seven weeks to several months. One rare earth trader in China, who asked to remain anonymous due to the sensitivity of the issue, shared: “When asked by my clients when their cargoes will be able to leave China, we give them an estimated time of 60 days, but it may take longer than that.”
This uncertainty is already starting to bite. Several Chinese suppliers have reportedly declared force majeure, a legal clause allowing them to break contracts due to extraordinary circumstances. In some cases, cargoes that had already reached the port are now barred from departure if they haven’t cleared customs.
This kind of disruption is not new. Reuters previously reported a similar scenario involving antimony, another strategic metal, which saw no shipments to the European Union after being added to a control list last September. The parallels suggest a broader strategy by Beijing to weaponize its grip on critical supply chains.
China currently produces around 90 percent of the world’s rare earths, giving it substantial leverage. Tightening controls demonstrates how this dominance can be used to apply pressure in the global geopolitical arena. However, this strategy is not without risk. It may also prompt foreign buyers to accelerate efforts to source rare earths elsewhere, slowly chipping away at China’s long-standing monopoly.
Analysts caution that if the freeze continues beyond two months, stockpiles in client countries—especially the United States—could begin to run dangerously low. Given the escalating trade tensions, it is expected that American companies may face the toughest hurdles in acquiring export licenses.