China's choke hold on rare earths — the minerals essential for electronics, automotive and defense systems — gave it significant leverage over the United States during recent tariff talks in London.

Controlling about 60% of global rare earth production and nearly 90% of refining, China tightened its grip in April by imposing export controls on seven rare earth elements and permanent magnets.

The curbs, partly in response to sky-high tariffs on Chinese exports imposed by US President Donald Trump, exposed US vulnerabilities, as the country lacks domestic refining capacity.

"The whole world economy relies on these magnets from China," Jost Wübbeke, managing partner at the Berlin-based Sinolytics research house specializing in China, told DW. "If you stop exporting those, it will be felt across the globe."

The resulting supply chain disruptions have hit American industries hard. US carmaker Ford, for example, announced on June 13 it had been forced to scale back SUV production in Chicago due to shortages, while auto parts suppliers Aptiv and BorgWarner said they were developing motors with minimal or no rare earth content to counter supply constraints.

Michael Dunne, a China-focused automotive consultant, told The New York Times that China's curbs "could bring America's automotive assembly plants to a standstill."

A survey by the American Chamber of Commerce in China revealed that 75% of US firms expect their rare earth stocks to be exhausted within three months. US producers urged Washington to negotiate an end to the restrictions, and in London, China has agreed to speed up export license approvals, although a large backlog persists.

It is also unclear whether the deal includes access for US military suppliers, who rely on these minerals for fighter jets and missile systems.

China's strategic use of rare earths as a geopolitical tool is not new. In 2010, Beijing halted exports to Japan for two months amid a territorial dispute,........

© Deutsche Welle