China has added 10 US-based companies to its export control list in response to the US Government placing restrictions on several Chinese companies earlier in June.
The companies under these new restrictions include rare earth producers MP Materials (NYSE:MP) and USA Rare Earth (NASDAQ:USAR), as well as other companies that are strategically linked to US military supply chains. The export ban halts exports of dual-use Chinese-origin products to the companies in question.
MP Materials and USA Rare Earth are both involved in the US’ strategic mine-to-magnet supply chain and are key participants in building a domestic critical minerals supply chain for defence and advanced manufacturing in the US.
China’s Commerce Ministry said in a statement that the export controls are a response to the “US Government’s malicious practice” and are meant to safeguard Chinese national security.
This new restriction follows a move earlier in June 2026 by the US to place Chinese firms Alibaba Group Holding (HK:9988), Baidu (HK:9888), BYD (SZ:002594), and Nio (HK:9866) on a list of companies that the US says are aiding China’s military, restricting direct contracting with these companies.
The latest wave of export restrictions began in April 2025, when China announced its first round of restrictions on heavy rare earths and permanent magnets, in response to the Trump administration’s tariffs and controls on semiconductors.
According to the Center for Strategic and International Studies, this first round triggered significant supply disruptions across global supply chains and in the automotive industry in the US, Europe, and Japan, prompting US President Trump to negotiate a 90-day truce to restart exports.
Following that 90-day period, China imposed stricter regulations, including a foreign direct product rule that restricted the sale of foreign-made products containing any amount of Chinese-sourced rare earth materials without prior approval by the Chinese government.
China also placed restrictions on the outflow of skilled Chinese talent and proprietary technology. Those restrictions ended with an agreement between the US and China in late October 2025, which suspended export restrictions for one year.
Despite the US’ push to accelerate mine-to-magnet capacity, the latest Chinese export controls underscore how exposed the US is as it focuses on building domestic critical minerals supply chains.
With MP Materials, USA Rare Earth, and other strategically important firms facing new constraints, the resulting impacts will likely include slower downstream processing, magnet manufacturing, separation, and other related activities.
Until more projects come online and the US is able to scale up its own capacity, any disruptions to export flows will continue to reverberate across manufacturing, energy technologies, and national security supply chains.
Write to Amy Rotman at Mining.com.au
Images: USA Rare Earth
