China's export controls on rare earth elements continue to inflict severe damage on global supply chains more than a year after they were first imposed, with shipments of the most strategically sensitive heavy rare earths remaining approximately 50% below pre-restriction levels despite ongoing trade talks between Beijing and Washington, according to Chinese customs data reviewed by Reuters
The controls, introduced in April 2025 in retaliation for President Donald Trump's Liberation Day tariffs, have become one of the most consequential legacies of the Sino-American trade dispute While overall Chinese rare earth export volumes have broadly recovered, exports of yttrium, dysprosium and terbium — critical inputs for advanced permanent magnets, aerospace thermal coatings, EV motors, wind turbines and military systems — remain sharply constrained
