China pauses shipments of essential materials amid trade conflict with US

(MENAFN) China has suspended the export of several critical rare earth metals and specialized magnets, escalating tensions in its ongoing trade dispute with the United States, the New York Times reported. The move comes in response to US President Donald Trump’s recent decision to sharply raise tariffs on Chinese imports.

On April 4, China’s Ministry of Commerce and the General Administration of Customs announced new rules requiring special export licenses for six heavy rare earth elements and magnets produced from them. These materials are vital to the production of electric vehicles, missiles, drones, and computer chips, and are predominantly sourced from China.

Though the license system is not yet fully implemented, enforcement has been inconsistent across Chinese ports. Some customs authorities allow exports with trace amounts of restricted materials, while others require thorough testing. Industry insiders told the NYT that shipments have been effectively frozen as of the past weekend.

Michael Silver, CEO of American Elements, said his firm was informed that licenses may take up to 45 days to process. As a result, the company has begun stockpiling inventory to meet its contractual obligations. Daniel Pickard, who chairs the US Trade Representative’s critical minerals advisory panel, warned the export restrictions could have a “serious impact” on the US and may harm China’s reputation as a reliable supplier.

The NYT also reported that the new measures restrict Chinese companies from working with an expanding list of American firms, especially in the defense sector. James Litinsky, CEO of MP Materials, highlighted the threat these controls pose to the US military supply chain.

Earlier this month, President Trump raised tariffs on Chinese goods to 145% as part of an effort to boost domestic manufacturing and fix trade imbalances. While several nations received a temporary 90-day reprieve to negotiate, China was not included.

In retaliation, Beijing imposed 125% tariffs on US products and criticized Washington’s approach, accusing it of economic coercion. Chinese officials warned that further escalation was unproductive but vowed to defend their interests, also lodging a complaint with the World Trade Organization.

MENAFN21042025000045015687ID1109452938