Global Auto Industry Shaken by China's Rare Mineral Export Restrictions
China's suspension of critical mineral exports disrupts global supply chains affecting automakers, aerospace, and military sectors, amid rising tensions with the U.S. Trump and Xi Jinping are set to discuss the issue. The shortage has pushed international diplomats and corporations to seek urgent negotiations with Beijing.
Concerns over China's grip on rare earth minerals surged as global automakers expressed alarm at China's restrictions on exports of these critical materials. These limitations are threatening to delay production, echoing previous warnings from Indian EV manufacturers.
The April decision by China to halt exports of these minerals has disrupted essential supply chains, affecting industries like automotive, aerospace, and military globally, highlighting China's control over these resources. This move is interpreted as strategic leverage in China's ongoing trade dispute with the U.S.
Diplomats and automakers from various countries are scrambling to negotiate faster approvals from Chinese officials to prevent halts in global production. Initiatives are underway for high-level discussions in Beijing amid growing anxiety in corporate boardrooms and capitals like Washington and Tokyo.
(With inputs from agencies.)
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