China’s control of rare earth exports weighs on Korean industries

China’s restrictions on rare earth element exports will weigh heavily on Korean IT firms and carmakers by impeding the timely production of chips and electric vehicles (EVs) in the U.S., which reportedly has low inventory, experts said Monday. The New York Times reported on Sunday (local time) that the Chinese government ordered restrictions on April 4 on the export of six heavy rare earth metals, which are refined entirely in China, as well as rare earth magnets, 90 percent of which are produced in China. Following the order, those items can be shipped out of China only with special export licenses. This was seen as a retaliatory measure by Beijing in an escalating trade war following U.S. President Donald Trump’s imposition of massive tariffs of up to 145 percent on goods imported from China. With both sides showing no immediate signs of ending the conflict, Korea’s businesses are also on edge over the possible repercussions of the restrictions. The Korean government estimates that the country holds public stockpiles of more than six months' worth of key rare earth elements, incl