AUVSI Statement on China’s Rare Earth Export Restrictions

April 14, 2025

Reports that the People’s Republic of China (PRC) has halted exports to the United States of critical materials and magnets should not come as a surprise. Time and time again, the PRC has sought to use economic statecraft to undercut U.S. industry and competitiveness. From the dumping of subsidized drones and robotics into the U.S. market, to targeted sanctions on key U.S. defense companies, the PRC has consistently leveraged its economic tools to disadvantage American firms in favor of its own.

This latest action halting exports of key rare earth elements is just the most recent example. It not only threatens economic stability across multiple U.S. sectors but also harms our warfighting readiness and the resilience of our defense industrial base. Rare earth magnets are vital to uncrewed systems, autonomy, aerospace, and countless national security applications. Without access to reliable supplies, these sectors face significant disruption.

The U.S. government and industry must align on proactive policies to support domestic and allied sources of critical minerals and magnets to ensure the autonomy, robotics, and broader uncrewed technology ecosystems are not irreparably harmed by the PRC’s economic warfare against U.S. companies.

AUVSI and our member companies stand ready to work with the White House and Congress to swiftly address this challenge by utilizing all available tools, including the Defense Production Act, existing manufacturing incentive programs, expansion of global partnerships, and other strategic initiatives.