Continued Restrictions on Rare Earth Exports Stir Uncertainty

Key Takeaways

• China is moving toward a more targeted export control regime for rare earth elements, adjusting restrictions based on intended end use and end user.
• The 90-day trade truce may offer temporary relief for American firms reliant on Chinese rare earth elements, but persistent uncertainties over licensing timelines and procedures are clouding the outlook.
• The new controls are part of China’s broader strategy to strengthen its export control regime and increase geopolitical leverage.