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.