As President Donald Trump and Chinese President Xi Jinping prepare to meet this week, China’s export restrictions on rare-earth metals and rare-earth magnets remain a significant point of contention in their trade discussions. These materials, essential for a wide range of industries including automotive manufacturing, renewable energy, electronics, and military technology, have become a focal issue due to China’s dominant position in their global production and supply.

China began imposing export controls on seven rare-earth elements and related magnets in April 2025, shortly after Mr. Trump introduced steep tariffs targeting China and other countries. These measures have since tightened, with a broader set of export restrictions scheduled to come into effect on November 10. The delay and reduction of shipments have affected manufacturers in the United States, Europe, Japan, and India, leading to supply chain disruptions and production cutbacks.

The United States and other affected countries have criticized Beijing for inconsistent and incomplete export licensing practices. While some shipments continue, many manufacturers report delays and shortages. Michael Hart, president of the American Chamber of Commerce in China, noted that while most members receive the majority of their rare-earth supplies, the restrictions have raised concerns about China’s reliability as a long-term supply partner.

Chinese officials emphasize that the export controls are designed to prevent the use of critical minerals in military applications rather than to pursue economic leverage. Guo Jiakun, a spokesman for China’s Ministry of Commerce, reaffirmed China’s commitment to stable and secure supply chains but did not comment on whether the upcoming restrictions would be delayed or modified.

Negotiations between the United States and China have included proposals to postpone the November 10 restrictions to ease tensions. American officials suggested a delay of six months to a year as part of a broader agreement to freeze new tariffs and trade actions. However, Beijing has reportedly sought a longer freeze extending through the remainder of Mr. Trump’s presidency, aligning with its political calendar ahead of the Communist Party’s national congress next autumn. Talks on the duration of any extension remain inconclusive.

Tensions have further escalated due to China’s sharp reduction in rare-earth shipments to Japan, especially rare-earth magnets and elements such as dysprosium, crucial for advanced electronics and electric vehicles. These restrictions followed Japanese Prime Minister Sanae Takaichi’s statements suggesting Japan might defend Taiwan in the event of a Chinese military action—a sensitive geopolitical flashpoint. China’s government has justified the export ban to Japan as targeting dual-use items with potential military applications.

China controls around 90 percent of the world’s refining capacity for certain rare-earth elements widely used in industrial processes but has so far exempted exports of these specific materials from licensing. The current and forthcoming controls cover other rare-earth elements essential to high-tech industries, including erbium, which plays a key role in fiber optic communications and artificial intelligence infrastructure. Industry experts have reported bottlenecks at Chinese ports ahead of the November 10 restrictions, indicating further supply challenges may lie ahead.

With China’s near-monopoly on rare-earth production and export control policies at the center of trade negotiations, the outcome of the Trump-Xi meeting on these issues remains uncertain, underscoring the complexities of balancing geopolitical, economic, and security interests in global rare-earth supply chains.