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American Focus > Blog > Economy > Trump-Xi call isn’t enough to resolve critical mineral shortage
Economy

Trump-Xi call isn’t enough to resolve critical mineral shortage

Last updated: June 6, 2025 2:32 am
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Trump-Xi call isn’t enough to resolve critical mineral shortage
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These moves have raised concerns among businesses around the world about potential disruptions to their supply chains. The ongoing trade tensions between the U.S. and China have only added to the uncertainty surrounding the availability of critical minerals.

Analysts have suggested that the restrictions on rare earth exports could be a strategic move by China to gain leverage in future trade negotiations with the U.S. and other countries. By controlling the global supply of these essential metals, China could potentially dictate terms in future trade agreements.

However, many businesses are now facing the immediate impact of these restrictions, with some already experiencing production delays and disruptions. The automotive industry, in particular, is feeling the effects of the rare earth shortage, with several companies forced to halt production temporarily.

It remains to be seen how the situation will evolve in the coming months and whether the U.S. and China can resolve their differences to ensure a stable and reliable supply of critical minerals for industries around the world.

China’s recent policy tightening restrictions on exports of products with both civilian and military applications, including metals like tungsten, has sparked concerns among Western companies. Tungsten, known for its hardness comparable to that of a diamond, is a crucial material used in various industries such as weapons manufacturing, semiconductor production, and industrial cutting machines.

According to Martin Hotwagner, a market analyst at Austria-based Steel & Metal Market Research, the average car contains approximately 300 grams of tungsten, with a significant amount being lost even through recycling processes. As global supplies of tungsten dwindle, Western companies are facing the prospect of running out of this vital metal by the end of the summer.

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Tungsten’s unique properties make it a sought-after material for enhancing the strength of other metals, making it a valuable asset in various applications. With China’s export controls impacting the availability of tungsten on the global market, companies are now scrambling to find alternative sources to meet their production needs.

As the demand for tungsten continues to rise, it is essential for businesses to explore innovative solutions and strategies to secure a stable supply chain. Collaboration with industry partners, investing in research and development, and exploring new recycling technologies are some of the key steps that companies can take to mitigate the impact of the tightening export controls on tungsten.

In conclusion, the tightening export restrictions on tungsten by China have significant implications for industries reliant on this critical metal. By proactively addressing the supply chain challenges and exploring alternative sourcing options, companies can navigate through these uncertain times and ensure the continuity of their operations.

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