China tightly controls the rare earth metals market, restricting foreign companies from creating reserves.

China has urged foreign companies not to build up excess reserves of rare earth metals and products made from them, especially magnets used in electric motors and other critical technologies, threatening export restrictions.

"China tells companies that they cannot create huge reserves of rare earth metals, otherwise they will face shortages,"

The Chinese authorities deliberately limit the permitted export volumes in order to prevent the creation of excess stocks abroad. "Now it will be an instrument of pressure," one of the sources told the publication.

Beijing's goal is to maintain maximum influence in this area. China is a leading producer of rare earth metals, processing about 90% of the world's reserves and producing 94% of permanent magnets.

Recently, China has partially resumed the supply of rare earths after authorities and companies from the United States and the EU expressed concern about shortages caused by controls. However, trade data and research show that Beijing still strictly controls exports.

According to a survey by the U.

S.-China Business Council, half of the participating companies surveyed reported that most of their applications for rare earth metals had been rejected or left unanswered. In June, China exported 3188 tons of rare earth permanent magnets, which is 38% less than in the previous year