China has halted exports of key rare earth metals and magnets, threatening global industries that rely on them, including electric vehicles, aerospace, semiconductors and military systems. The suspension, linked to new export licensing rules, has disrupted shipments at Chinese ports while the government finalizes a regulatory framework. Once in place, the new system could permanently block supplies to certain companies, particularly US military contractors. The crackdown follows heightened trade tensions and is seen as a retaliatory response to US tariffs recently introduced by the Trump administration. It restricts the export of six heavy rare earth metals, refined solely in China, along with the high-strength magnets made from them, which are crucial for electric motors, missiles, & AI-related hardware. China dominates the global market, producing 99% of heavy rare earth metals and 90% of rare earth magnets. The new rules require export licenses, but with no clear system in place yet, companies around the world face uncertainty over when, or if, supplies will resume. Some firms report it could take 45 days or more to obtain a license. While many Japanese companies have stockpiles, most US companies do not, raising fears of production halts. Enforcement has reportedly been inconsistent across Chinese ports, with some allowing limited exports and others blocking them entirely unless extensive testing proves compliance. The move signals China’s willingness to leverage its dominance in rare earths to influence global supply chains and retaliate against Trump. Experts warn that a prolonged disruption could damage China’s credibility as a reliable supplier and reshape international sourcing strategies.