China temporarily suspends export of key metals as trade war escalates
PTC News Desk: The trade war between the US and China seems to be escalating as China is gearing up for all out action. Beijing has now announced suspension on the export of several critical rare earth elements, metals and magnets threatening to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.
According to the reports, Chinese government is drafting new regulation system and meanwhile Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports.
Once in place, the new system could permanently prevent supplies from reaching certain companies, including American military contractors. The crackdown comes in response to President Trump’s sharp increase in tariffs that started on April 2.
On April 4, the Chinese government ordered restrictions on the export of six heavy rare earth metals, which are refined entirely in China, as well as rare earth magnets, 90 percent of which are produced in China. The metals, and special magnets made with them, can now be shipped out of China only with special export licenses.
In a potential complication, China’s Ministry of Commerce, which issued the new export restrictions jointly with the General Administration of Customs, has barred Chinese companies from having any dealings with an ever-lengthening list of American companies, particularly military contractors, accoring to the report.
- With inputs from agencies
