US auto suppliers say immediate action needed on China rare earths restrictions
A major US auto parts group warned on Wednesday that China's new export rules on rare earths could soon cause serious problems for car production. These rare earth materials are used in cars and cameras and China controls over 90% of the world's supply.
This follows news that China is trying to monitor and control who is buying and selling rare earths by using a tracking system.
Car giants like GM (GM), Ford (F) and Toyota (TM) are already feeling the pressure. Ford has paused production of its SUV because of rare earth shortages.
In a statement to Reuters, MEMA, the Vehicle Suppliers Association said: "The situation remains unresolved and the level of concern remains very high," the group said. "Immediate and decisive action is needed to prevent widespread disruption and economic fallout across the vehicle supplier sector."
