China refuses to approve exports of specific rare earth metals used in US weapon systems

China controls global supply of samarium, a rare earth metal critical for U.S. and allied military production—fighter jets, missiles, and more.

• Supply disruptions in recent months have come just as Western nations are scrambling to restock depleted weapons inventories due to support for Ukraine and Israel.

• The recent U.S.-China trade truce left military-use rare earth exports unresolved.

• At the London negotiations, Chinese officials linked export approvals for certain military-grade rare earths—including samarium—to U.S. restrictions on advanced AI chip exports to China.

• China refuses to approve exports of specific rare earth metals used in U.S. weapon systems, maintaining a chokepoint in the global supply chain.

• Beijing offered to fast-track civilian-use export licenses for trusted U.S. firms and opened a limited “green channel,” military-use materials remain blocked.

• The U.S. has said there will be no quid pro quo on lifting AI chip curbs in return for access to rare earths.

• The U.S. may extend tariffs on Chinese goods beyond the August 10 deadline, casting doubt on a comprehensive deal.

• China’s rare earth monopoly, especially in refining and processing, continues to be a key strategic vulnerability for the West.

• Analysts warn that fundamental issues—like trade imbalance and critical minerals—won’t be resolved soon, possibly not during Trump’s term.

• The talks reflect Beijing’s readiness to use rare earths as geopolitical leverage.

• Ryan Hass of Brookings notes the Trump administration is learning it can’t secure another one-sided trade deal, as China is increasingly assertive.

The info comes via various reports, Reuters, New York Times.

This article was written by Eamonn Sheridan at www.forexlive.com.