China to block rare earth shipments to US military contractors

China plans to block U.S. military access to rare earth magnets while easing restrictions for civilian electronics companies. The new "validated end-user" system aims to expedite shipments to approved firms, excluding military contractors. This move reflects China's control over 70% of global rare earth mining and 90% of processing, using its leverage in trade negotiations.

Previously, China announced that foreign entities would need special licenses for exports of products with rare earth metals, but delayed implementation after a trade truce with Trump. The U.S. administration is pursuing alternative sources of rare earths, including partnerships with Kazakhstan, Greenland, and Ukraine.