China’s chokehold on supplies of minerals essential to high-tech goods from electric vehicles to jet fighters has become a formidable advantage in trade negotiations with the US.
China’s export controls on rare-earth magnets disrupted global industries, pushing the US to negotiate.
“China’s dominance puts American companies at direct risk given that any sort of agreements that have been made can be reneged on.”
Defense companies are expected to face the most serious challenges. US defense companies have moved away from China-sourced magnets, but few military-grade magnets are completely free of Chinese rare earths.
wsj.com/world/asia/tru
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Byron Wan
@Byron_Wan
China is putting a 6-month limit on rare-earth export licenses for US automakers and manufacturers, giving Beijing leverage if trade tensions flare up again while adding to uncertainty for American industry.
In exchange, US negotiators agreed to relax some recent restrictions on x.com/Byron_Wan/stat…
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