China export controls on critical minerals impact Western defense

China is increasingly utilizing export controls on critical minerals as a geopolitical lever, impacting Western aerospace, satellite, and defense industries. Recent restrictions involve materials such as rare earth elements, yttrium, gallium, and indium phosphide, which are essential for rocket engines, laser technology, and radiation-resistant solar cells.

In the tungsten sector, China controls approximately 79% of global mine production and 85% of APT refining. Since February 2025, Beijing has required export permits for these materials. In response, the United States has announced that starting January 1, 2027, it will no longer accept tungsten in defense products if it has passed through supply chains involving China, Russia, Iran, or North Korea.

These supply constraints are driven by tensions surrounding compliance standards, such as the Responsible Business Alliance (RBA) audit programs. Many U.S. corporations have faced delays of over six months for export licenses, prompting increased Western interest in reshoring initiatives and new mining projects in regions like the U.S. and Norway to secure strategic metal supplies.