A few Chinese refineries turn rare earths into the magnets inside electric cars, wind turbines, AI servers and weapons, handing Beijing a quiet global lever
Key Facts
—The lever. China refines most of the world’s rare earths and makes most of its high-performance magnets.
—The move. Beijing tightened export controls on seven rare-earth elements in 2025 and aimed fresh curbs at Japan in 2026.
—The squeeze. Shipments of two heavy rare earths to Japan fell to zero in late 2025, by China’s own customs data.
—The demand. The same magnets sit inside electric cars, wind turbines, AI-server motors and modern weapons.
Despite Beijing's signal to ease rare earth exports, global supply cutoffs will remain an ever-present threat, experts warned.
Beijing's monopoly over rare earths is a key bargaining chip in its trade negotiations with the US.
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