Overview

• Beijing now requires government permits not only for exports from China but also for overseas re-exports of products containing Chinese rare earths, with rules taking effect in early December.
• China explicitly forbids rare-earth exports for military purposes, prompting warnings from Germany’s raw materials agency about risks to defense supply chains.
• G7 finance ministers say they will coordinate a response, while U.S. Treasury chief Scott Bessent pledged not to let short-term market swings drive China policy.
• Prices for some rare-earth materials have jumped sharply, with industry sources reporting spikes of up to 200% and notable stock declines for related companies.
• Automotive and machinery producers report tightening supplies, with BMW citing shortages, Ford having halted a Chicago plant earlier this year, and Europe’s recycling efforts, including Heraeus’s Bitterfeld facility, falling well short of near-term needs.