China's NDRC Threatens Rare Earth Controls Against US Defense Contractors

In July 2019, the National Development and Reform Commission announced the study and formulation of new export controls. These controls threatened to restrict the supply of Chinese rare earths to United States defense contractors. The measures specifically targeted US military equipment firms and contractors that refused to do business with Huawei.

Supply chain experts warned that rare earths are critical materials used in almost every major weapon system. A modest decrease in the availability of these materials increases their prices. Severe and sustained shortages could threaten the ability of American defense contractors to produce vital systems.