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China blocks rare earth export: risk of stop for cars, drones and US military industry
Beijing introduces new restrictions on export of critical metals and magnets. The New York Times speaks of ‘retaliation’ for Trump’s tariffs. Meanwhile, Xi Jinping strengthens ties with Southeast Asia
China has suspended exports of several critical minerals, including magnets and heavy rare earth metals, which are crucial for the production of electric vehicles, drones, robots and missiles. According to the New York Times, shipments are halted at several ports pending new regulations. The measure is likely to hit Western strategic industries hard, including US defence and weapons companies.
New licensing system: supplies at risk for Western companies
Since 4 April, Beijing has imposed a special licensing system for the export of six rare metals and magnet derivatives. China controls about 90% of the world production of these materials. The new regulatory framework – warns the US newspaper – could lead to a permanent stop in supplies for some companies, including US military contractors.
The response to US duties: ‘No one is safe’
The Chinese decision comes amid growing trade tensions with Washington. US President Donald Trump recently relaunched the hard line against Beijing: ‘No one is safe’ from the new duties, he wrote in a post on Truth, accusing China of unfair trade practices and adopting non-tariff barriers against the US.
Xi Jinping in Vietnam: strategic agreements on AI, railways and maritime security
As relations with the US tighten, Chinese President Xi Jinping embarks on a tour of Southeast Asia. During the first stop in Vietnam, 45 cooperation agreements were signed in key areas such as artificial intelligence, railway infrastructure, supply chain and joint maritime patrols.
Xi met with the General Secretary of the Vietnamese Communist Party, To Lam, in Hanoi. Despite territorial disputes in the South China Sea, the two leaders spoke of a ‘breakthrough’ in bilateral relations. Lam confirmed his willingness to maintain ‘substantial, balanced and lasting’ cooperation with China.
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