China added at least 10 US companies, including MP Materials and USA Rare Earth, to its export control list in June 2026, undermining the Trump administration’s efforts to build a domestic rare earth supply chain. China controls roughly 70% of global rare earth mining and holds near-total dominance over processing, giving it a commanding position over materials essential for EV motors, wind turbines, and defense systems. The Trump administration has attempted to counter this with significant funding, including 14.8 billion dollars in letters of interest from the Export-Import Bank for critical minerals projects, but new mining and processing operations will take years to reach meaningful scale. A temporary truce negotiated during a Trump-Xi summit in October 2025 has proven largely insufficient, as heavy rare earth shipments from China remained markedly reduced even during the supposed ceasefire. The automotive sector is already feeling the impact of Chinese export restrictions, and the US defense industry, which relies on these materials for programs like the F-35 fighter jet, remains exposed to supply disruptions.
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