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China, which holds the global monopoly over the precious rare earth metals needed for the manufacturing of phones, automobiles and missiles, continues to play hardball over lifting export restrictions of the precious metals, warding off pressure from a host of countries, including the US, EU and India.

“China’s export control measures are consistent with universal practices,” Chinese foreign ministry spokesperson Lin Jian said, responding to a question during a media briefing in Beijing on Thursday, 5 June, that Japanese automaker Suzuki has suspended production of its main small cars in Japan because of delays due to rare earth restrictions.

“Such measures are non-discriminatory and not targeted at any particular country,” he said, adding that the question should be directed to competent authorities.

This is the second time this week that Lin has deflected a question on the growing global concern over the restrictions on export of Chinese rare earth metals.

On Tuesday, 3 June, he evaded a question about reports that executives and representatives of the car industry in Europe, the US and India have expressed concern that China’s rare earth export controls are creating a risk of shortages that could lead to stoppage of production soon, saying that the question should be addressed to the competent authorities.

Reports from Tokyo on Thursday, meanwhile, said Suzuki Motor has halted production of its Swift model cars in Japan from 26 May due to China’s rare earth restrictions.

Reports in recent weeks from India too spoke of growing concern among the automobile manufactures about scarcity about rare earth magnets, which are critical components in electric vehicles (EVs) and even some parts of traditional internal combustion engine vehicles.

Also, China’s export restrictions of the rare earths — especially germanium, a critical mineral that is used in manufacturing of semiconductors, fibre optic cables and solar panels — have sparked concern in India across the respective industries.

Officials of India as well as many other countries say they are engaged with the concerned ministries and departments.

Rare earths are a group of metals consisting of 17 elements. Though present in several countries, their extraction is costly and messy, causing massive amounts of pollution.

According to the International Energy Agency, currently China accounts for 61 per cent of global mined rare earth production, but controls 92 per cent of the global output.

China’s exports restrictions on rare earths, which were imposed in June 2024 through a decree by premier Li Qiang, reportedly became stricter since US president Donald Trump imposed 146 per cent tariffs on Chinese exports.

This week, the European Union (EU) urged China to stop restricting the export of rare earth minerals and magnets, with the bloc’s trade chief saying its industries are in an “alarming situation”, the Hong Kong-based South China Morning Post reported on Thursday.

The request was made during a meeting between the sides’ top commerce officials in Paris on Tuesday.

This comes as manufacturing sectors across Europe raise the alarm about a shortage of rare earths, which are used to manufacture high-tech goods ranging from electric cars and smartphones to military tanks and aircraft.

“I informed my Chinese counterpart about the alarming situation in the European car industry, but I would say industry as such because clearly rare earths and permanent magnets are absolutely essential for industrial production,” EU trade chief Maros Sefcovic said on Wednesday, 4 June, briefing reporters a day after his meeting with Chinese commerce minister Wang Wentao.

PTI inputs edited for clarity