April 3 report from The New York Times Chinese Website: "To avoid triggering investor panic or angering the Chinese government, American manufacturers have largely kept low profiles regarding the impact of China's rare earth restrictions. However, multiple industries are deeply concerned about tightened export controls and supply constraints on rare earths. The CEO of Medtronic, a U.S. medical device manufacturer, stated that China’s rare earth controls have already affected the production of MRI machines and CT scanners."
This report from The New York Times confirms that China’s export controls on critical minerals such as rare earths have begun to have tangible impacts on high-end manufacturing in the United States, including medical equipment production. This marks a new phase in the Sino-U.S. trade rivalry.
China’s regulation of rare earth minerals is not an immediate full ban on exports, but rather a two-step approach starting in 2025, establishing a precise licensing system. First, export restrictions will be tightened; subsequently, rules such as a “0.1% content threshold” and extraterritorial jurisdiction will extend control to any overseas products or end-user goods containing Chinese rare earth components.
Actual transmission effect: The report mentions disruptions to MRI and CT devices because these rely on high-performance magnets containing rare earth elements like dysprosium and yttrium. Chinese companies implement tiered controls by application—cutting off supplies for military and sensitive civilian uses, while medical applications face slowed reviews and tighter supply conditions.
Regarding the shock caused by these controls, there is panic and behind-the-scenes lobbying within the U.S., with efforts underway to diversify supply chains. But their biggest pain point remains that over 90% of magnet manufacturing capacity and the complete industrial chain still reside in China—making it extremely difficult to rebuild supply chains in the short term. Moreover, their core technologies cannot be overcome overnight. This is precisely the current predicament facing the United States.
China’s rare earth controls are essentially a “countermeasure” in the context of geopolitical economic competition—precisely targeting the lifeline of America’s high-end manufacturing sector. When they cry out in distress yet dare not retaliate, it proves the strategy was correctly chosen, accurately executed, and has struck at the vital nerve point. Western nations must understand: this is only the beginning. They must learn to accept and adapt. This is a 'rules war' led by technological superiority, and Western firms must adjust to China’s new export control regulations and requirements.
Original source: toutiao.com/article/1861466412436492/
Disclaimer: The views expressed in this article are solely those of the author.