Some Chinese rare earth suppliers have reportedly stopped shipments into the US over concerns they could face repercussions from Beijing, underscoring the issue of critical minerals ahead of President Xi Jinping’s planned visit to Washington this month.
A handful of Chinese suppliers have refused to ship rare earth materials to US companies since early August, when China imposed sanctions on the Responsible Business Alliance (RBA), according to Reuters.
The suppliers are said to be concerned about being penalised by the Chinese government for complying with the due diligence framework of the Responsible Minerals Initiative (RMI), a global mineral supply chain audit program connected to the RBA.
Some rare earth companies in China had already stopped supplying US customers in recent months to avoid becoming caught up in geopolitical tensions, the Reuters report also said.
Trade tensions hit mineral flows
Beijing said its sanctions against the RBA and other US auditing firms were imposed in response to a series of restrictions introduced by the US Federal Communications Commission (FCC) since December.
Those measures have targeted Chinese electronics testing laboratories, drones, consumer routers, submarine cables, advanced robotics equipment, and power inverters.
The dispute has also spilled into negotiations over rare earth supplies.
China first introduced export restrictions covering several rare earth elements in April 2025, disrupting supplies to manufacturers dependent on the materials. Exports of many rare earths and related magnets have since recovered, but supplies of some strategically important materials remain tight.
Prices for such, including yttrium, indium phosphide, and tungsten, remain near record highs. These materials have military applications and are also used in sensitive industries including aerospace and semiconductor manufacturing.
US officials have repeatedly called on China to honour commitments made over the past year to ensure the smooth flow of rare earth export licences.
When US officials recently raised concerns about rare earth flows, Beijing argued that the FCC restrictions violate commitments made under the Busan trade truce, according to Reuters.
US companies face licence delays
Chinese exports of yttrium to the US have increased this year but remain at only about half their 2024 levels, despite large shipments to other countries, Chinese customs data shows.
Some US companies have also been waiting more than six months to receive mineral export licences, according to Reuters.
“China has been very effective in using rare earth export controls to impose restraint on the Commerce Department’s Bureau of Industry and Security,” Rhodium Group geopolitical strategist Reva Goujon told Reuters.
The continuing supply problems have now made critical mineral access part of US preparations ahead of Xi’s expected state visit to Washington on 24 September.
“Supply chain chokepoints will come into focus, but I would expect Beijing to loosen up critical raw material controls a bit around the summit to deflate US allegations that Beijing is not upholding the Busan truce,” Goujon added.
The supply constraints are not limited to the US.
Licence approvals have been even more restricted for buyers in India and Japan, according to Reuters. In the case of the latter, Chinese suppliers have largely refrained from shipping materials to Japanese firms.
Customs data shows China exported no terbium to Japan between January and August, compared with 20 tonnes during the same period last year, while gallium shipments fell 65% and yttrium exports plunged 98%.
Write to Jackson Chen at Mining.com.au
Image: US Department of Energy
