China's Rare Earth Export Restrictions Reignite US Trade Tensions

Beijing has once again tightened its grip on rare earth metal exports to American companies, a strategic move that threatens to reignite the trade war with the United States. This decision, reported by Al Arabiya, follows a previous agreement aimed at easing industrial crises, which saw China pledge to facilitate supplies and avoid expelling Chinese students from the US.Western companies are now facing significant supply chain disruptions and shortages of these crucial materials. According to the Wall Street Journal, businesses are redirecting their supply chains to circumvent potential factory shutdowns.China holds a dominant position in the global rare earth market, controlling 48% of the world's reserves and producing an estimated 90% of the strongest magnets. This gives Beijing a powerful "soft pressure" tool in international trade negotiations.The United States is particularly vulnerable, relying heavily on China for rare earth imports, especially yttrium, which is essential for manufacturing chips and smartphones. Furthermore, these rare earth metals are critical components in the military sector, used in guidance systems, radars, lasers, and advanced fighter jets like the F-35, which requires over 400 kilograms of rare earth metals for its construction.While rare earth metals are not inherently scarce in American soil, their processing, production, and utilization are largely concentrated in China, underscoring the US's dependency and China's strategic leverage.