As part of the retaliation against Donald Trump's punitive tariffs on Chinese goods, China has imposed new export controls on seven additional rare earth elements, temporarily suspending any exports of the valuable minerals. 

The newly affected elements, namely samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium, are critical components of a wide range of products, ranging from electric cars and semiconductors to military equipment such as missiles and drones.

While the new rules stop short of a full export ban, the affected metals will require a special export license going forward – granting Chinese authorities an extra layer of control over who is granted export rights. 

Once the system is implemented, certain companies, for example U.S. defense contractors, could be banned from importing the crucial supplies, which are very hard to substitute or source elsewhere.