China plans to block rare earth shipments to US military contractors: report

China is reportedly crafting a plan to block the US military from getting shipments of rare earth magnets – even as it eases restrictions on shipments to US companies making electronics and other consumer goods.

Beijing has repeatedly used its near-monopoly over rare earth metals – crucial to make everything from iPhones to military hardware like F-35 fighter jets and drones – in tense tariff talks with the Trump administration.

Beijing is planning a “validated end-user” system that fast-track shipments for approved civilian firms in the US, the Wall Street Journal reported, citing sources familiar with the plan. It would allow China’s President Xi Jinping to keep his promise to President Trump about easing exports while cutting out military contractors.

If it is enacted, the plan could cause ongoing headaches for US companies that make “dual use” products or have both civilian and military clients, such as certain automakers and aerospace companies, according to the report.

The White House did not immediately return a request for comment.

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Author: HP McLovincraft

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