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US-China Tech War Escalates: AI Chips, Rare Earths, and Global Markets in Turmoil​


Chinese restrictions could affect more than a dozen defence and aerospace firms and give Beijing ‘crucial advantage’

America’s advanced weapons manufacturers are likely to face a critical shortfall of key rare-earth minerals that they import from China as a consequence of Donald Trump’s escalating trade war with Beijing. New export licensing restrictions imposed by China on seven rare earths are like to cause disruptions in supply to more than a dozen US defence and aerospace companies involved in the production of everything from fighter jets to submarines and drones, the Center for Strategic and International Studies said in a commentary. The warning from CSIS was echoed in an expert opinion from the UK thinktank Chatham House, which said any further tightening of Chinese restrictions “has the potential to do serious damage to the US defence industry and undermine the Trump administration’s wider re-industrialisation ambitions”.

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