China’s movement to impose strict export controls on rare earth elements used in car manufacturing has caused fears of possible car scarcity.
Earlier this month, the regime of Chinese President Xi Jinping promulgated limits in the shipments of seven metals and rare earth magnets that are essential to build electric vehicles, as well as military hardware such as combat and dheres, electronic and other keys aircraft.
The measure has left many western companies with stocks of key materials that will last six months or less, the Financial Times reported, citing interviews with government officials, automobile executives and metal merchants.
“If we do not see magnetic deliveries to the EU or Japan at that time or at least close to that, then we see genuine problems in the automotive supply chain,” said Jan Giese, merchant from Frankfurt Tradition’s firm, to The Outlet.
In other places, a senior car executive who requested anonymity told the FT that the restrictions would be “consistent” for car manufacturers, including Elon Musk’s Tesla.
China’s export controls, the last ones in a series imposed by Beijing, were reprisals against those of President Trump for imposing total or 145% tariffs on imports of Chinese products. China had already banned exports from Gallic, Germanio and Antimony and restrictions on graphite shipments.
The latest export controls require rare earth companies in China to ensure licenses of the Chinese Communist Party to send international materials.
Last week, Reuters reported that Tesla had stopped the imports of certain automobile pieces necessary to increase the planned production of its next Cyber and Semi -electric truck due to the commercial war.
As the Post reported, the almost total China control of the strange land metals and other critical minerals has caused national security groups, given the tense relations between Washington and Beijing.
China Minera up to 70% of the World Critical Mineral Supply and controls 90% of the processing capacity. Critics have also accused Beijing of using unfair commercial tactics, including price manipulation and export limits, to press their advantage.
Experts have also warned that China often cut the shipmens completely in case of worsened diplomatic relations or a real conflict.
Both the Trump and Congress administration have been fighting to address the crisis.
Last year, Rep. Rob Wittman (R-VA.), He directs the Select Committee of the Chamber of the Chinese Mineral Policies Work Group, introduced a trio of bills aimed at overcoming the critical mineral chain of the United States and the limitation in China.
“We are not going to fight them in another way than to have an alternative to what China does. And I think we can do it, and I think we can do it quickly,” Wittman told The Post in January.