China has tightened export controls on rare earth minerals, critical components used in U.S. defense systems such as missile magnets, infrared sensors, and drone motors. This move has led to shortages and supply chain disruptions for the U.S. defense industry, with over 80,000 weapons components relying on Chinese-controlled inputs. Contractors warn of production delays, increased costs, and risks to maintaining safety stock levels. The restrictions are part of China's response to U.S. tariffs and trade policies, deepening global concerns over supply chain security in defense, energy, and electric vehicle manufacturing sectors. Germany has also expressed fears of supply shortages due to China's near monopoly on rare earths, with many European firms reporting delivery shortfalls and urging the European Union to engage Beijing. In response to these pressures, Japan plans to begin trial mining of rare earth deposits off its easternmost island, Minamitorishima, in January 2026 to reduce dependence on China. Former Trump trade adviser Peter Navarro highlighted that China's rare earth policies have exposed vulnerabilities in U.S. supply chains.