China halts exports of some rare earth metals and magnets

China has suspended exports of certain rare earth metals and magnets amid a trade war with the United States, a move that could negatively impact the global automotive, semiconductor, and aerospace industries.

According to  The New York Times, the Chinese government is developing a new export control system and has halted shipments of magnets and heavy rare earth elements from many of its ports during this process. These materials are essential for manufacturing cars, drones and missiles.

NYT reports that the measures could significantly affect the operations of several companies, including U.S. defense contractors, and impact exports to Japan and Germany.

The newspaper notes that rare earth magnet exports make up a small share of China’s overall trade, but the move could have serious implications for the United States and other countries.