January 1, China Squeezes US Industry with Rare Earth Move

Wyatt’s Take

• China is tightening control over rare earth exports and key battery tech
• This move pressures the US before high-stakes talks with Trump and Xi
• American industry faces tough odds without domestic supply

China just rolled out broad new restrictions on exporting rare earth minerals and battery parts. This comes right before a possible Trump-Xi meeting, putting the United States on its back foot in upcoming talks.

Experts warn these measures could slow down U.S. tech and military industries that depend on Chinese imports.

The Chinese government added more materials and tech related to rare earths, making it tougher for American companies to keep up. They want tighter control over minerals crucial for everything from semiconductors to electric car batteries.

Dean Ball, a senior fellow at the Foundation for American Innovation, said,

“​​This is a very big deal. China has asserted sweeping control over the entire global semiconductor supply chain, putting export license requirements on all rare earths used to manufacture advanced chips.”

Ball added,

“If enforced aggressively, this policy could mean ‘lights out’ for the US AI boom, and likely lead to a recession/economic crisis in the US in the short term.”

President Trump stated he knew about the move but had not gotten a full briefing. He suggested the U.S. might respond by cutting back on buying goods from China, saying,

“We import from China massive amounts. Maybe we’ll have to stop doing that.”

The rules don’t just cover exports from China—they extend to items made abroad using Chinese rare earths. If any item contains more than 0.1% Chinese rare earth content by value, it falls under the new controls.

State media in China say these rules will block military applications overseas. The government claims national security is behind the changes. Products for foreign militaries or groups on China’s export control watchlist will be outright denied.

This is a direct attempt by China to flex its dominant position and pressure America before leaders meet face to face. Some fear supply chains for tech goods, batteries, and defense gear could grind to a halt.

America’s ability to mine and process rare earths is still small, with the U.S. producing a fraction of what China does. In 2023, China had 69% of the world’s rare earth production, while the U.S. only made up 12%.

These metals are essential for modern tech, but now the country that makes most of them is locking down the supply.

Want to read more on how this could shape America’s future? Check out the full article below.

Wyatt Matters

Middle America feels these global decisions first. When other countries control what we need to keep our farms, factories, and cars running, it hits us at home. Building up what we make here has never been more important for our families and future.

Full story at Just The News