China rare earth firms halt some US shipments over geopolitical worries, sources say

Some Chinese rare earth suppliers are halting shipments to the U.S. due to geopolitical concerns, according to three sources. This issue has been on the U.S. agenda as President Xi Jinping is set to visit Washington, with U.S. officials repeatedly urging China to adhere to commitments made in Busan and Beijing over the past year.

The problem has been exacerbated by China's own trade compliance measures, causing a few suppliers to reject shipments to U.S. companies since early August. The lack of compliance with the Responsible Minerals Initiative has led some Chinese firms to avoid shipments to the U.S. to prevent entanglement in geopolitics. Despite rebounding exports of many rare earths and related materials, certain critical materials remain in tight supply and at record highs, affecting industries such as aerospace, chipmaking, and medical devices.

Brief written by urgent.news from Investing.com's own syndicated text. Machine-written — may contain errors; check the original before relying on it.