Companies making rare earth magnets in China have been dealing with tougher export checks since September, industry insiders say. This happened weeks before the government announced broader restrictions on these strategic materials last week. The extra hurdles for magnet manufacturers are raising doubts about China’s intentions. Back in May, Beijing agreed to move faster on exports as part of a deal to ease trade tensions with Washington. Now it appears the country might be doing the opposite, tightening its hold on products that matter for both military equipment and everyday technology. Two people familiar with the situation told Reuters that getting export permission became noticeably harder starting in September. Officials are now sending back applications more frequently, asking companies to provide additional details, one insider explained. The approval process is taking more time, though most cases still get decided within the official 45-day window set by the commerce ministry, according to the second source. But the level of questioning now mirrors what happened in April, when the trade dispute was at its worst. Back then, long waits for licenses created magnet shortages that forced some car factories to stop production temporarily. Neither source would say exactly how much extra time companies are waiting or share specifics about what regulators are asking. Both requested their names not be used because the topic is sensitive in China. Export numbers show sharp decline Numbers released Monday showed that rare earth exports from China fell 31 percent in September. However, the available information does not break down whether magnets accounted for much of that drop. “It’s not surprising to see lower exports in September as getting a new license became increasingly difficult last month,” one source noted . Magnet exports took a sharp dive in April and May but bounced back with growth through June, July and August as reported by Cryptopolitan. Numbers for September are expected later this month. China dominates global supply of rare earths , which includes 17 specialized elements. These materials go into electric cars, wind power systems, and military radar equipment. The government keeps tight control through its licensing rules. Last week’s expansion of those controls angered officials in the United States. President Donald Trump initially threatened new tariffs and counter-restrictions on exports, though he softened his language afterward. US and European companies rush to deadline for new export rules Since the announcement, foreign customers have been flooding suppliers with questions, trying to rush orders through before the updated rules start on November 8, both sources confirmed. Adam Dunnett, who leads the EU Chamber of Commerce in China, said the biggest worry for member companies remains the pile-up of applications waiting for approval. The business group has watched some members get the green light while others face delays over recent weeks, he added. “We can’t say that we’ve seen a decrease in the level of anxiety or concern,” Dunnett said. “Some companies have had their wait extended further without any response as to why that is the case.” U.S. rare earth mining stocks surged during Tuesday’s premarket trading, building on significant increases from Monday. The rally followed President Donald Trump’s warning of potential 100% tariffs on China in response to the country’s restrictive export policies on essential minerals. Critical Metals saw the largest gain, jumping over 37% before the market opened. USA Rare Earth climbed 12%, while MP Materials advanced 8%. Energy Fuels shares increased 11.4%, and NioCorp Developments gained 9%. Join a premium crypto trading community free for 30 days - normally $100/mo.
