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Chinese Rare Earth Suppliers Restrict U.S. Shipments Amid Beijing Fears
China provides important materials called rare earths to companies around the world.
Some Chinese suppliers are now afraid to send these materials to U.S. buyers.
They worry that China’s government could punish them, especially if the materials are later sold to restricted customers.
This has made supplies less certain for American businesses.
Some U.S. companies have waited over six months for permission to receive shipments.
China has recently allowed some shipments and approved several licences.
However, prices for materials such as yttrium and tungsten remain very high.
Japan has also received much less of some materials from China.
The issue is adding tension before a planned meeting between the Chinese and U.S. leaders.
Several Chinese rare earth suppliers have halted or refused shipments to U.S. companies over fears of retaliation from Beijing.
Suppliers are concerned that due-diligence requirements linked to the Responsible Business Alliance could trigger action by Chinese authorities.
Some U.S. companies have waited more than six months for rare earth export licences, despite recent approvals for some firms.
China exported 27 tonnes of yttrium to the United States in July after two months without shipments.
Supplies of several critical materials remain tight, while Japan reported sharp declines in Chinese gallium and yttrium shipments.
- Who
- Chinese rare earth suppliers, U.S. companies, Chinese President Xi Jinping, and U.S. officials are involved.
- What
- Some Chinese suppliers are withholding or delaying rare earth shipments to U.S. customers because they fear Chinese retaliation.
- Where
- The shipments involve China, the United States, and other markets including Japan; Xi Jinping’s planned visit is to Washington.
- When
- The reported refusals occurred in recent months; restrictions began affecting exports in April 2025, with further sanctions imposed in August.
- Why
- Suppliers fear geopolitical repercussions, Chinese action linked to due-diligence requirements, or materials being resold to restricted customers.
China’s Position
U.S. and Industry Concerns
Reason for restrictions
China’s Position
China says its sanctions against U.S. auditing firms responded to American restrictions on Chinese companies and technology.
U.S. and Industry Concerns
U.S. companies and suppliers cited by Reuters say export controls and licence delays are disrupting access to critical materials.
Global supply stability
China’s Position
China says it remains committed to maintaining stable global critical-mineral supply chains, and some shipments and licences have resumed.
U.S. and Industry Concerns
Businesses and analysts say supplies remain uncertain, with some materials scarce, prices near records, and companies still refusing shipments because of geopolitical risks.
Key facts
- Affected shipments
- Several Chinese suppliers have halted or refused some shipments to U.S. buyers.
- Licence delays
- Some U.S. companies have waited more than six months for export approvals.
- July yttrium exports
- China exported 27 tonnes of yttrium to the United States in July.
- Supply conditions
- Prices of yttrium, indium phosphide, and tungsten remain near record levels.
- Japan’s yttrium imports
- Japanese imports of yttrium from China fell 98% during January-August compared with the same period last year.
- Japan’s gallium imports
- Chinese gallium shipments to Japan fell 65% during January-August compared with the same period last year.
- Planned diplomatic event
- Xi Jinping is expected to visit Washington on September 24, according to the report.
Sources
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