1.
China produces ~69% of global rare earth mining output and dominates ~90% of refining and permanent magnet production — the critical materials for electronics, EVs, and defense systems2.
It strategically deployed export restrictions in two waves since 2025, including controls on products with even 0.1% Chinese-origin content to block workarounds3.
The country unfazed about new tariffs, China views rare earth leverage as proven insurance that it can impose real costs on the US (South China Morning Post)4.
2025 trade truce suspended some curbs for a year — and key measures may return if negotiations collapse5.
The US has not yet built viable alternative supply chains
