The Hudson Institute has released an analysis detailing China's use of bureaucratic procedures to exert control over global critical minerals supply chains, impacting Western automotive and technology industries. This announcement was made in a report by the institute.
According to Reuters, China’s Ministry of Commerce has proposed expanding export restrictions on technologies used in producing electric vehicle (EV) batteries and processing critical minerals such as lithium and gallium. The report notes that major companies like Contemporary Amperex Technology Co. Limited (CATL) could face challenges in overseas expansion if these curbs are enacted. For instance, the technology needed to process lithium for battery components may be restricted. This demonstrates that the same export control measures intended to tighten leverage over foreign customers can also impede Chinese firms’ ability to supply international markets.
The Hudson Institute's analysis, highlighted in its report "China’s Bureaucratic Playbook for Critical Minerals," states that China supplies about 58% of the world’s light rare earths and 90% of heavy rare earths, controlling over 90% of processing and magnets market share. The report further details how export license applications, central to this bureaucratic playbook, can create delays that disrupt supply chains. Companies such as CATL have raised concerns in industry forums that reliance on these domestic processes may slow raw material flows and affect production timelines.
According to Investing.com, alarm over China’s control of critical minerals has risen sharply as global automakers, including European, Indian, and U.S. firms, warned that China's April 2025 export suspension of rare earth alloys, magnets, and mixtures could trigger production delays or outages. The Reuters article states that regulatory bottlenecks and license processing delays at Chinese ports have disrupted shipments central to automotive, aerospace, defense, and electronics supply chains. Automaker representatives are reported to have said these restrictions risk scheduling delays and reduced profitability for both Western and Chinese producers.
The Hudson Institute is a Washington D.C.–based policy research organization providing analysis and recommendations on national security, economics, and technology policy. According to its official website, the institute’s research covers global supply chain security, energy markets, and major trends affecting both Western and Asian industries. The Hudson Institute’s mission is to promote informed policy solutions to advance American and allied interests worldwide.
