Reports stated, “China is working to restrict the flow of essential metals to Western defense companies, leading to production delays and forcing companies to search globally for the necessary metal supplies to make everything from bullets to fighter jets.” For example, reports indicate that one drone manufacturer, supplying the U.S. military with equipment, had to delay orders for up to two months while searching for an alternative to Chinese magnets made from rare earth metals. Traders confirmed to the newspaper that some materials needed by the Western military-industrial complex are now being sold at five times or more the price they were before China imposed the restrictions. Over 80,000 components used by the Pentagon (U.S. Department of Defense) contain metals subject to Chinese export restrictions. Almost the entire supply chain of the U.S. military relies on at least one Chinese supplier for these metals, so Beijing’s restrictions could cause significant problems for the U.S. military. Additionally, Western buyers reported to the newspaper that China requires detailed information about the intended use of the purchased metals to ensure they are not used by Western companies for military production. In early April, China’s Ministry of Commerce announced that China had placed 16 American companies on the export control list to regulate the export of dual-use goods. As reported by the “New York Times,” Beijing suspended the export of a wide range of critical metals and magnets essential for assembling cars, drones, robots, and missiles. In June, the “Wall Street Journal” reported, citing informed sources, that China agreed to resume issuing export licenses for rare earth metals to American car manufacturers and factories but limited the permits to six months. Additionally, “Reuters” reported, citing informed sources, that “China has not committed to granting export permits for certain specialized rare earth metal magnets required by U.S. military suppliers for fighter jets and missile systems.”
