China Tightens Rare Earths Controls, Pressuring Global AI Supply Chain
China, which controls nearly 90% of rare earth refining, has tightened export licensing, creating supply bottlenecks for semiconductor and AI industries.
China continues to dominate the global critical minerals supply chain, controlling about 89% of rare earth refining, 99% of gallium refining, and 69% of germanium refining. Exports of key minerals such as tungsten have fallen sharply to major buyers including South Korea and the United States.
Stricter export licensing rules introduced since 2023 require government approval before shipments can leave the country. These tightening controls are creating supply bottlenecks for semiconductor and AI industries, reinforcing rare earths as both a strategic geopolitical tool and a key economic advantage.
Source: First Squawk