4 hours ago
3
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
Nearly six months ago, China sent an unmistakable message about its grip on critical supply chains. Its leaders suspended exports of powerful rare earth magnets that many industries around the world can’t live without.
The move gave renewed urgency to efforts begun in recent years to develop alternatives. In the United States, four factories to make rare earth magnets are finishing construction or starting to produce magnets. An especially large factory has just opened in Eastern Europe.
But the scramble since April has served only to underline the lead that China has after three decades of heavy investment, and how hard it will be for the rest of the world to catch up quickly.
China has used its chokehold on rare earth magnet supplies to gain leverage in trade negotiations with President Trump and with the European Union. Since the initial cutoff, Beijing has allowed some rare earth exports but now keeps tighter reins on them. As a result, Mr. Trump has been more cautious about raising tariffs on China than on countries like India and Brazil, which were not original targets for his tariffs.
China has also restricted rare earth magnet exports to Europe to pressure the European Union to reconsider tariffs on Chinese electric cars.
Image
