China’s New Rare Earth and Magnet Restrictions Threaten U.S. Defense Supply Chains (Gracelin Baskaran – Center for Strategic & International Studies)

In advance of President Donald Trump’s upcoming visit to South Korea later this month—where he is expected to meet Chinese President Xi Jinping for the first time since 2019—China announced that it has expanded its restrictions on rare earth and permanent magnet exports. The Chinese Ministry of Commerce’s Announcement No. 61 of 2025 implements the strictest rare earth and permanent magnet export controls to date. The move both strengthens Beijing’s leverage in upcoming talks while also undercutting U.S. efforts to bolster its industrial base.

China’s New Rare Earth and Magnet Restrictions Threaten U.S. Defense Supply Chains