China's Rare Earth Monopoly: A Trade War Squeeze on Global Auto Industry

In the heart of Beijing, China's Ministry of Commerce is wielding global influence by regulating rare earth magnets, essential to the auto industry and beyond. With its near-monopoly, China's recent export controls are rattling international relationships.

The Bureau of Industrial Security, part of the Ministry of Commerce, plays a pivotal role, overwhelmed by applications from global companies seeking export licenses for these crucial magnets. Despite issuing some permits, many remain pending, sparking claims of strategic delays amidst a simmering U.S.-China trade war.

Washington counters with its own trade restrictions, while diplomatic tensions rise. Industry insiders criticize the bureaucracy's complexity, further hampered by a scant number of approving officials within the Ministry. China's leverage over this strategic resource continues to impact global trade negotiations.

(With inputs from agencies.)