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China's rare earth export controls are good for Beijing, bad for business

  • On June 27, the U.S. and China reached an agreement to end the rare earth export freeze and resume shipments of critical minerals to the U.S.
  • The freeze resulted from Beijing's new rare earth export controls intended to leverage political pressure amid ongoing geopolitical tensions.
  • These controls severely disrupted supply chains across automotive, aerospace, electronics, and defense industries, forcing production cuts and factory shutdowns.
  • Market observers predict a slight recovery in supply during July and August 2025; however, CSIS analysts caution that this agreement might only provide a short-term easing, with one official expressing assurance that the flow of magnets will proceed according to the terms set.
  • The deal will ease immediate supply shortages and benefit key industries but ongoing tensions and dependency on China suggest global supply chains remain fragile.
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Center

Without them, there is nothing to do with electronics, car production or the armaments industry: rare earths worldwide have become coveted - and significantly more expensive, because China has limited exports in response to the customs dispute with the US.

·Hamburg, Germany
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tz.detz.de
+8 Reposted by 8 other sources
Center

China used its economic strength as an instrument of power before US President Trump took up his second term of office. The deepening of the trade conflict is affecting German industry.

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Zeit OnlineZeit Online
Reposted by
saarbruecker-zeitung.desaarbruecker-zeitung.de
Lean Left

Here you can find information on the topic "Trade Conflict". Read now "China's export controls are expensive for rare earths".

·Germany
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  • 71% of the sources are Center
71% Center
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The Mighty 790 KFGO broke the news in on Monday, July 7, 2025.
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