China Bans South Korea from Supplying the USA with Defense Products Made from Chinese Rare Earth Minerals

The Chinese government has banned South Korea from exporting defense-related goods to the United States if they are made from Chinese rare earth minerals.

The Korea Economic Daily reported on this.

South Korean companies are facing significant pressure from China, which has instructed the South Korean government and businesses to check the products being exported to the United States to ensure they do not contain Chinese rare earth materials.

According to the media, at least two transformer manufacturers have received official notices from the Chinese government demanding that they halt the export of any energy equipment to the United States.

China is threatening sanctions against companies that violate this ban, ignoring the fact that such actions could seriously impact South Korea’s economy.

The ban covers six heavy rare earth metals and magnets, the export of which was prohibited in early April 2025.

If these restrictions are not followed, China may completely halt the supply of essential minerals to South Korea, which could significantly worsen the capabilities of South Korea’s defense industry.

The media notes that this is the first instance in which China has officially implemented export control measures against non-American companies with ties to the United States.

After the United States imposed high tariffs on Chinese products, China responded by tightening control over rare earth minerals that could be used in U.S. defense products.

Additionally, a licensing requirement was introduced for countries purchasing these minerals. The process of obtaining such licenses takes about 45 days, effectively making the export of these valuable resources impossible.

As noted by South Korean experts, the trade war between China and the United States will primarily impact South Korea, whose exports and imports are closely tied to the two largest economies in the world.

Militarnyi previously reported that American drone manufacturers are facing significant dependence on Chinese components in their products.