China has restricted the export of seven rare earths and related material used across the defense, energy and automotive industries as part of its retaliation against U.S. President Donald Trump’s tariff hikes on Chinese goods, reported Reuters.
Seven categories of medium and heavy rare earths, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium-related items, were placed on an export control list. Exporters must now apply to the Ministry of Commerce for licenses, a relatively opaque process that can range from six or seven weeks to several months.
“When asked by my clients when their cargoes will be able to leave China, we give them an estimated time of 60 days but it may actually take longer than that,” said a China rare earth trader, who spoke to Reuters on condition of anonymity.
If the freeze lasted longer than two months, then the typical stockpiles built up by customers could deplete, noted the anonymous source.
China produces 90% of the world’s rare earths.
Source: Reuters