Global Supply Chains Under Siege: The Rare Earth Magnet Crisis

Diplomats and business leaders from India, Japan, and Europe urgently seek expedited talks with Beijing officials to resolve delays in rare earth magnet exports. The shortages pose a severe threat to global supply chains, highlighting China's significant leverage given its dominance in rare earth processing.

Diplomats and industry leaders from India, Japan, and Europe are scrambling to initiate urgent discussions with Beijing officials to speed up approval for rare earth magnet exports, sources reveal. The looming shortages endanger global supply chains, adding to the mounting pressure on Beijing.

A Japanese business contingent plans to visit Beijing in early June for talks with the Ministry of Commerce about the restrictions, a well-informed source confirmed. European diplomats, representing nations with significant automotive sectors, have also sought immediate meetings with MOFCOM recently. Meanwhile, India is orchestrating a trip for auto executives in the forthcoming weeks due to imminent industry shutdowns.

Amid these unfolding developments, Adam Dunnett, secretary general of the European Chamber of Commerce in China, expressed alarm over the critical situation. China's dominance in the rare earth industry, controlling over 90% of global processing capacity, underscores its leverage. Export limitations imposed in April necessitate licenses from Beijing, further complicating the scenario.

(With inputs from agencies.)