The Battle Over Rare Earth Magnets: China's Strategic Leverage

In a looming grey edifice near Beijing's Tiananmen Square, a small team at China's Ministry of Commerce is shaping the future of the global auto industry, one rare earth magnet export permit at a time.

China dominates the rare earth magnet industry, essential for electric vehicle motors, and recently added these to its export control list amid an ongoing trade war with the U.S., mandating that all exporters obtain licenses from Beijing. The decision-making falls to the Bureau of Industrial Security and Import and Export Control, part of China's Ministry of Commerce.

While many licenses have been issued, industry insiders report that they are a small subset of the worldwide applications that have surged since stricter controls were enforced. The U.S. perceives the delays as China falling short on its Geneva trade talk commitments, retaliating with curbs on certain American exports.

(With inputs from agencies.)