China rare earth firms halt some US shipments over geopolitical worries, sources say
Some suppliers fear Beijing retaliation and have withheld materials used in magnets, while U.S. firms wait more than six months for licences, sources said.
- On Friday, reports emerged that some Chinese rare earth suppliers are refusing shipments to the U.S. as suppliers fear retaliation following Beijing's August sanctions against the Responsible Business Alliance.
- Beijing's August decision to sanction the Responsible Business Alliance triggered the refusals, as suppliers worry about complying with Western due diligence frameworks while Beijing claims sanctions respond to U.S. FCC restrictions.
- Chinese customs data shows gallium shipments dropped 65% and yttrium 98% this year, while some U.S. firms report waiting over six months for licenses affecting medical devices and energy sectors.
- Ahead of President Xi Jinping's visit to Washington on September 24, U.S. officials are pressing Beijing to address these compliance issues, with rare earths supply now on the diplomatic agenda.
- Rhodium Group strategist Reva Goujon expects Beijing to "loosen up critical raw material controls a bit around the summit" to deflate U.S. allegations regarding the Busan truce and ease supply chokepoints.
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16 Articles
Some Chinese suppliers of rare earths are refusing to send cargo to the United States for fear of reprisals from Beijing, according to three separate sources, demonstrating how access to these critical materials continues to be a friction point to Washington a few weeks before President Xi Jinping's visit to the U.S. capital. U.S. authorities have repeatedly requested Beijing to comply with the commitments made in Busan and Beijing over the past…
China rare earth firms halt some US shipments over geopolitical worries
A handful of Chinese suppliers have refused to ship rare earths to US companies since early August, when China sanctioned the Responsible Business Alliance (RBA), a US supply-chain monitor.
Some Chinese suppliers have refused to send rare land to American companies since the beginning of August
Rare Lands USA: USA Rare Earth loses the 4% advance after Chinese suppliers refuse to deliver to the US market.
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