From Yahoo Finance: 2025-06-05 10:05:00

China’s Ministry of Commerce controls the rare earth magnet export permits vital for electric vehicles and military equipment. China’s near-monopoly on rare earths has led to delays in export licenses, sparking tensions with the US. Trump and Xi Jinping discussed the issue, but bureaucratic hurdles remain in the export process.

The Ministry of Commerce’s export control bureau has only three senior officials approving permits and a staff of 30. The application process for export permits is complex and time-consuming, with strict guidelines and requirements. Delays in approvals are causing disruptions in various sectors, leading to concerns over China’s true intentions.

The global alarm over rare earth shortages reveals China’s leverage and bureaucratic chokepoints. Applications for export licenses are lengthy and require detailed information to ensure no military use. Concerns about excessive information requests, delays, and bureaucratic inertia raise questions about Beijing’s compliance with trade agreements. China’s strategy is seen as a short-term leverage move.



Read more at Yahoo Finance: The world’s auto supply chain is in the hands of a few Chinese bureaucrats