Global Enterprise logo
BROUGHT TO YOU BYUOB logo

Are China’s rare earths really a potent weapon?

Evidence indicates that the country’s export restrictions would cost the West far less than often feared

    • Even if alternative supplies cannot fully replace Chinese exports, they can ensure that the highest-value uses are covered.
    • Even if alternative supplies cannot fully replace Chinese exports, they can ensure that the highest-value uses are covered. PHOTO: BLOOMBERG
    Published Wed, Sep 9, 2026 · 03:13 PM

    [MILAN] Early 2025, China’s government introduced an export-licensing regime requiring exporters to obtain approval before shipping heavy rare-earth elements and permanent magnets, over which China has a near-monopoly, to foreign firms.

    China relaxed these export restrictions later in the year, after US President Donald Trump agreed to reduce tariffs and export restrictions.

    For many observers, the message seemed clear: China’s rare-earths dominance amounts to a powerful source of geopolitical leverage, and the US and Europe must do everything in their power to erode it.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Share with us your feedback on BT's products and services