China Has Plan to Keep U.S. Military From Getting Rare-Earth Magnets

China is planning to ease the flow of rare earths and other restricted materials in a bid to exclude companies with connections to the U.S. military, according to a report in The Wall Street Journal, Jenny McCall wrote for Yahoo Finance.

The system could make importing certain Chinese materials more difficult for automotive and aerospace companies that have both civilian and defense clients. (Photo: CFP / Xinhua) 

The Wall Street Journal reports: “The ‘validated end-user’ system, or VEU, would enable Chinese leader Xi Jinping to follow through on a pledge to President Trump to facilitate the export of such materials while ensuring that they don’t end up with U.S. military suppliers, a core concern for China, according to people familiar with the plan.”

If strictly implemented, the system could make importing certain Chinese materials more difficult for automotive and aerospace companies that have both civilian and defense clients.

Beijing’s plan could still change, and its licensing system wouldn’t be certain until it is implemented, the people said.