China’s factory sectors require massive volumes of Rare Earth materials and magnets to fuel their domestic needs.

Some industry insiders now insist that Chinese demand has caught up to supply, and export restrictions are necessary to keep domestic industries well supplied.

There are obvious national security issues involved, if Chinese officials allow the export of materials that eventually end up in foreign weapons systems.

But it also represents a huge opportunity cost to Chinese factories and households, if those minerals and magnets are sent elsewhere. Low-cost vehicles, electricity, and consumer products in China’s domestic economy also are dependent on the same inputs as Pentagon weapons makers and foreign factories.