China rare earth firms halt some US shipments over geopolitical worries

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BEIJING: Some Chinese rare earth suppliers are declining to ship to the US for fear of repercussions from Beijing, three sources said, underscoring how access to the materials remains an issue for the US weeks before President Xi Jinping visits Washington.

US officials have repeatedly asked China to stick to commitments made in Busan and Beijing over the past year to ensure the smooth flow of rare earth export licences. The persistence of the problem has put it on the US planning agenda ahead of Xi’s September 24 visit, a source familiar with the work said.

A handful of Chinese suppliers have refused to ship rare earths to US companies since early August when China imposed sanctions on the Responsible Business Alliance (RBA), a US supply chain monitor, a separate source with direct knowledge of the situation said.