Input Stories

China is putting further restrictions on its critical mineral exports (Semafor).
 
What’s going on: “Beijing will expand export controls on critical minerals like tungsten, graphite and magnesium, [all of which are] needed to make electronics.”

• The restrictions, which will go into effect Dec. 1, will also apply to “dual-use” technologies and items, or those that have both civilian and military uses ( Nikkei Asia, subscription).
• The changes are said to be “in anticipation of expected … U.S. tariffs on Chinese goods and increased curbs on [the sale of] advanced semiconductor chips and AI technology to China” (Semafor). 

Why it’s important: China controls more than 80% of the world’s tungsten supply chain (CNBC), about 87% of global magnesium supply (Financial Times, subscription) and 76% of the world’s graphite production (Mining Technology, subscription).    

• The materials are vital in the manufacturing of everything from defense technology to batteries and electronics to aviation equipment (Semafor). 

Clamping down: Earlier this fall, China mandated that its critical minerals exporters provide “[Chinese] authorities with detailed, step-by-step tracing [data on] how shipments of rare earth metals are used in Western supply chains.” 

• The Chinese government is in the process of acquiring the last two foreign-owned rare earth companies that remain in China (The New York Times, subscription).  

The NAM’s view: “China’s dominance of global critical minerals extraction and refining capacity presents a risk to the U.S.,” said NAM Managing Vice President of Policy Chris Netram.

• “The NAM has long advocated for strengthening our supply chain of these resources through permitting reforms that expedite mine approvals and processing facility construction, as well as through trade agreements and work with allies. This news from China underscores the urgent need for lawmakers to speed the permitting process to ensure we can utilize our domestic sources of critical minerals.”