China just made the rare earth trade war personal. On June 22, Beijing’s Ministry of Commerce added 10 US companies to its export control list, including MP Materials and USA Rare Earth, two of the most significant players in America’s effort to build a domestic rare earth supply chain.
The move effectively bars Chinese firms from selling dual-use items to these entities.
What happened and why it matters
The new restrictions are a direct response to Washington’s recent expansion of its own blacklist targeting Chinese military-linked firms.
These 17 metallic elements are essential for everything from fighter jet engines to electric vehicle motors to the magnets inside your smartphone.
Initial export controls targeting heavy rare earths kicked off on April 4, 2025, with Beijing responding to US tariffs by restricting exports of specific elements and magnets. An expansion followed in October 2025, broadening the scope of materials covered.
Diplomatic efforts have produced a partial suspension of the stricter rules, set to last until November 10, 2026. Even during these so-called truce periods, export volumes of certain rare earths to the US remain sharply lower than pre-2025 levels.
The sectors feeling the squeeze
The industries affected by these controls read like a list of America’s strategic priorities: defense, aerospace, semiconductors, and electric vehicles.
MP Materials, one of the companies now on China’s blacklist, operates the only active rare earth mine in the US at Mountain Pass, California.
USA Rare Earth, another company targeted, has been working to develop domestic processing capabilities.
What this means for investors and risk markets
The partial suspension of stricter rules running until November 2026 creates an artificial deadline that markets will be watching closely.
With export volumes already running well below pre-2025 levels despite the truce, the baseline has already shifted.