Western companies have warned that the renewed US-China dispute over rare-earth materials will lead to “broken” supply chains and higher prices for chips, cars and weapons as industry executives plead for de-escalation between the two trading powers.
China first introduced rare-earth export restrictions in April in retaliation for tariffs imposed by the Trump administration, causing delays with vehicle production and forcing western companies to stockpile materials.
Last week, Beijing tightened those rules further, requiring foreign companies to get approval to export magnets that contain even trace amounts of China-sourced rare-earth materials and restricting the sharing of magnet-making expertise with foreigners.
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