Critical Minerals and Energy Intelligence

Chinese rare earth suppliers halt licensed US shipments ahead of Xi visit

Some Chinese rare-earth suppliers are refusing to ship material to US customers even after export licences have been approved, according to three people familiar with the trade, reports Reuters.

The suspensions began as early as August 2026 as companies sought to avoid possible penalties from Beijing, meaning China’s supply leverage now extends beyond the formal licensing process.

China exports of rare earth yttrium to the US - The Oregon Group

Chinese yttrium exports to the US remain at roughly half their 2024 level, despite a 27-tonne shipment in July following two months with no deliveries and some US companies have waited more than six months for mineral licences.

The restrictions are being tightened before President Xi Jinping’s September 24 visit to Washington, exposing the scale of US dependence:

China accounted for 60% of mined magnet rare earths, 91% of refined output and 94% of sintered permanent-magnet production in 2024
Beijing’s April 2025 export controls placed seven medium and heavy rare-earth elements, including terbium, dysprosium and yttrium, under licensing requirements. If suppliers remain unwilling to ship after approval, an export licence is no longer a guarantee of supply

The move is similar to China’s rare earth restrictions on Japan with no gallium, dysprosium, terbium or yttrium shipped to Japan in June, extending an eight-month halt in shipments of critical magnet materials — pushing Japan to search for alternative rare earth sources almost six kilometres beneath the Pacific Ocean.

Chinas exports of key controlled materials to Japan rare earths 1 - The Oregon Group

(Find out more in our recent newsletter: China’s rare-earth restrictions push Japan to mine the Pacific seabed)

The reported disruption to US supply from China follows an August 5 order from China’s Ministry of Commerce that placed the Responsible Business Alliance among six US entities on a countermeasures list, prohibiting Chinese organisations and individuals from conducting transactions or cooperation with them.

Rare earth suppliers in China reportedly fear penalties because they followed a mineral-auditing framework connected to the alliance. (note: the official order itself does not mention rare earths or direct exporters to stop shipments)

The latest commercial caution adds another barrier to China’s April 2025 export controls, which require licences for seven medium and heavy rare-earth elements and related products.

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