US business group says some critical minerals are ‘nearly unobtainable’ from China
By Michael Martina
WASHINGTON, June 10 (Reuters) – U.S. access to critical minerals from China remains difficult due to export controls and licensing delays, and restrictions in Beijing have pushed three-quarters of affected companies to seek new supplies, a U.S. business lobby said on Wednesday.
Beijing’s controls, implemented in April 2025 in retaliation for U.S. President Donald Trump’s tariffs, tightly restrict exports of some rare earth elements vital for advanced production.
This is despite Trump’s agreement with China’s Xi Jinping in October, in which the White House said China committed to “effectively eliminate” all existing and proposed critical mineral export controls.
The US-China Business Council said in a report that some rare earth elements remain “virtually unobtainable.”
“Despite some progress, confidence in long-term access remains low,” USCBC said, according to the results of its annual member survey conducted in February and March. he said.
According to the survey, 29% of the 38 affected companies said they were actively switching to non-Chinese suppliers of critical minerals, while 47% said they were looking for suitable alternatives to China but had not yet found them.
“China is driving this diversification away from China and creating strong interest from the corporate sector in finding alternatives,” USCBC President Sean Stein told Reuters.
China’s dominance of critical minerals has brought rival countries to at least a temporary trade war truce, but the Trump administration has made a concerted push to revive mineral supply chains from the United States and partner countries.
Despite these efforts, it will be difficult for the United States to eliminate supply problems in the next three years, Stein said.
Samarium cobalt magnets, as well as yttrium and cadmium, which are important for high-temperature aerospace and defense applications, are among the minerals that are still very difficult for U.S. companies to access, Stein said.
USCBC vice president Kyle Sullivan said securing not only minerals but also finished rare earth magnets is difficult because of China’s control over both mining and processing.
“This is a perfect situation for Congressional involvement because this cannot be solved by the Trump administration alone,” Stein said.
Stating that the uncertainty in US-China relations pressures companies’ investments in China, Stein stated in the report that “only half” (49%) of 134 companies plan to invest in China this year.
“China’s business environment for foreign companies is not improving. The country’s support for domestic companies, including preferential treatment in industrial policy and government procurement, is eroding gains from formal market access openings,” the USCBC report said. The statement was included.
(Reporting by Michael Martina; Editing by Mark Porter)
