Some Chinese Rare-Earth Suppliers Are Refusing U.S. Orders Weeks Before Xi’s Washington Visit

Some Chinese rare-earth suppliers are refusing to ship critical materials to American customers—not because Washington announced a new tariff or Beijing declared a sweeping new ban, but because the sellers reportedly fear being punished for choosing the wrong buyer.

The previously unreported pullback has affected a handful of Chinese suppliers since early August, according to three sources cited by Reuters on September 4. Other companies had already stopped some U.S.-bound shipments in recent months to avoid becoming trapped in the two governments’ widening trade and national-security fight.

Reuters could not determine how many suppliers have declined orders or the total volume affected. That limitation matters: this is not evidence that every rare-earth shipment from China has stopped. It does show that licenses and diplomatic promises alone may not be enough when exporters believe a sale could trigger retaliation.

Why some suppliers are backing away

The newest disruption reportedly followed Chinese sanctions against the Responsible Business Alliance, a U.S.-based supply-chain organization, in early August. The alliance is connected to the Responsible Minerals Initiative, whose auditing framework helps companies examine mineral sourcing and supply-chain risks.

Some suppliers became concerned that complying with those due-diligence procedures could expose them to consequences in China, a source with direct knowledge of the trade told Reuters. Other exporters reportedly feared that material sold to an American customer might later reach a prohibited end user.

That creates a difficult position for legitimate U.S. buyers. A company can satisfy American compliance requirements, obtain or await the required Chinese export license and still fail to persuade a supplier that the transaction is worth the geopolitical risk.

At least some American companies have waited more than six months for mineral export licenses, Reuters reported. Chinese exports of yttrium to the United States have improved this year but remain at roughly half their 2024 level, even as China has shipped substantial quantities elsewhere.

These minerals sit inside far more than smartphones

Rare earths are a group of 17 elements valued for their magnetic, optical and heat-resistant properties. The U.S. Department of Energy says they are used in magnets, batteries, catalysts and phosphors across transportation, power generation, petroleum refining, health care and consumer electronics.

Terbium and dysprosium help high-performance magnets retain their strength under heat. Yttrium has applications in aerospace, electronics, lasers and specialized ceramics. Rare-earth magnets are essential to many electric motors, wind turbines and defense systems.

The issue is therefore less about whether the average consumer buys a bag of rare-earth material and more about whether manufacturers can obtain small but indispensable inputs. A missing component can delay a much larger product even when every other part is available.

The Energy Department has said the United States imports more than 80% of its rare-earth elements. Washington is investing in domestic mining, separation, recycling and alternative materials, but building those supply chains takes years.

A trade promise is colliding with commercial fear

The reported refusals also expose a gap between high-level agreements and day-to-day commerce. Following an October 2025 meeting between Presidents Donald Trump and Xi Jinping, the White House said China had committed to postpone and effectively eliminate current and proposed coercive controls involving rare earths and other critical minerals.

China’s government has nevertheless maintained a formal licensing system for several medium and heavy rare-earth products. Its Ministry of Commerce announced those controls in April 2025, citing national security and nonproliferation obligations.

U.S. officials have repeatedly pressed Beijing to make licenses flow more predictably. The new reporting suggests that even approved trade can be chilled when private suppliers believe government scrutiny may follow.

Xi’s September 24 visit raises the stakes

The dispute is emerging less than three weeks before Xi is scheduled to visit Washington on September 24. Trump publicly confirmed that date in July, and Reuters reported Friday that Xi plans to bring a large delegation of Chinese corporate executives.

U.S. Trade Representative Jamieson Greer has said the visit is expected to produce announcements involving agriculture and non-tariff barriers rather than a comprehensive trade agreement. Rare-earth licensing is already on the American planning agenda for the meeting, according to Reuters.

The practical test will be larger than any summit statement. Washington wants assurance that licenses are issued, suppliers are willing to use them and American manufacturers can actually receive the materials they ordered.

For now, the latest stoppages remain limited and difficult to quantify. But they reveal the pressure point clearly: when a small group of minerals is essential to cars, chips, turbines and weapons, even a supplier’s private decision not to ship can become a national economic concern.