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 worldwide for the necessary metal supplies to make everything from bullets to fighter jets.” For example, reports indicate that a drone manufacturer supplying the US military was forced 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 prices five times or more than they were before China imposed the restrictions. More than 80,000 components used by the Pentagon (U.S. Department of Defense) contain metals subject to Chinese export restrictions. The entire US military supply chain almost entirely depends on at least one Chinese supplier, so Beijing’s restrictions may be causing significant problems for the US military. Additionally, Western buyers reported to the newspaper that China is requesting detailed information about the purpose of the purchased metals to ensure they are not used by Western companies in military production. In early April, China’s Ministry of Commerce announced that China had listed 16 US companies on an export watchlist aimed at controlling exports of dual-use goods. As reported by the New York Times, Beijing suspended the export of a wide range of vital metals and magnets necessary for assembling cars, drones, robots, and missiles. In June, the Wall Street Journal, citing informed sources, reported that China agreed to resume issuing export licenses for rare earth metals to US car manufacturers and factories but limited the permits to six months. Reuters, citing informed sources, reported that “China has not committed to granting export permits for some specialized rare earth metal magnets needed by US military suppliers for fighter jets and missile systems.”
