Beijing:  China is preparing to introduce a new export system aimed at preventing the United States military from gaining access to rare earth magnets that are crucial for advanced weapons and defense technology. According to a report by the Wall Street Journal, the plan would create a mechanism to differentiate between civilian and military-linked buyers, tightening control over who can receive key rare earth materials.

The new system, known as a “validated end user” plan, would allow certain foreign companies to be fast-tracked for export approval while restricting or blocking supplies to those with connections to the US Department of Defense. This move marks a significant step in China’s ongoing effort to strengthen control over the export of materials that are vital to global industries ranging from electric vehicles to missile systems.

Reuters reported that China’s Ministry of Commerce and other agencies are considering the proposal as part of a broader review of export controls. Although the details are not finalized, analysts say the plan could give Beijing more power to decide which foreign companies receive high-performance magnets and other sensitive materials.

Recent trade data shows that exports of rare earth magnets from China to the United States fell by nearly 30 percent in September compared with the previous month, suggesting that restrictions or supply disruptions are already taking effect. China currently dominates the global rare earth industry, controlling about 70 percent of mining, nearly 90 percent of refining, and over 90 percent of magnet production.

The United States has been trying to reduce its dependence on Chinese supplies. The Pentagon has recently taken a stake in MP Materials, a US-based rare earth mining company, as part of a multibillion-dollar effort to build local production and magnet-making capacity. Officials in Washington see this as essential for national security and the resilience of defense supply chains.

Experts say the new Chinese plan could deepen tensions between Beijing and Washington, which are already at odds over technology and defense cooperation. It could also cause ripple effects in industries that depend on rare earth magnets for products such as electric vehicles, wind turbines, and smartphones.

While China says the move is meant to protect national security and improve oversight of exports, Western analysts view it as part of a broader strategy to use control of critical minerals as leverage in its geopolitical rivalry with the United States.

Industry observers expect more details on the proposed export rules in the coming months. For now, defense companies and technology manufacturers around the world are watching closely, as the new system could reshape the global supply of materials essential to both commercial and military innovation.