According to reports, shipments of seven rare earth minerals that Beijing put on an export control list last week have come to a halt, increasing the possibility of shortages abroad as Chinese exporters start the protracted and unpredictable process of obtaining government licenses.
When Beijing banned the export of seven rare earths and related compounds used in the energy, defense, and automobile sectors on April 4, the shipments were seized.
Beijing took this action in response to the US President Donald Trump's tariff hikes on Chinese imports.
The Ministry of Commerce now requires exporters to apply for permits, which is a quite opaque procedure that can take anywhere from six to seven weeks to several months.
According to a report last month, since China put antimony on a controlled list in September, no exports of the metal have entered EU nations.
The usual customer stocks could run out if the freeze lasted longer than two months.
In addition, given the intensifying trade war between the superpowers, it might be particularly challenging for US customers to obtain export licenses.
About 90 percent of the rare earths produced worldwide come from China, and the export restrictions show how Beijing may use its authority to virtually cut off the supply of these essential components to customers worldwide.
However, due to the export restrictions will compel foreign customers to diversify away from China more quickly, even though this process is probably going to take some time, they are also likely to weaken China's hegemony.
Two analysts claim that a number of Chinese rare earth vendors have already canceled contracts with foreign buyers due to force majeure.
They said that if the cargo has not cleared customs, it is not permitted to leave the port where it is now waiting to be shipped.
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The number of scheduled cargoes that have been impacted still remains unknown.