Chinese Rare Earth Suppliers Halt Shipments to United States
Chinese rare earth suppliers have stopped shipments to the U.S. following Beijing's sanctions on a U.S. supply chain monitor ahead of President Xi Jinping's Washington visit.
Several Chinese rare earth suppliers have halted shipments to the United States, citing fears of repercussions from Beijing. The disruptions intensified in early August after the Government of China sanctioned the Responsible Business Alliance, a U.S. supply chain monitor. Chinese firms are reportedly wary of punishment for following the Responsible Minerals Initiative's due diligence framework.
China defends these sanctions as a response to Federal Communications Commission restrictions on Chinese electronics and robotics. While yttrium shipments spiked in July, other materials critical for chipmaking, aerospace, and military applications remain in tight supply with prices near record highs. Similar shipment declines and customs delays have been reported for Japanese firms, specifically regarding gallium and terbium.
U.S. officials have pressed China to honor previous commitments made in Busan and Beijing to ensure the smooth flow of export licenses. These tensions persist as President Xi Jinping prepares for a scheduled visit to Washington on September 24.
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