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US President Donald Trump has signed an executive order that requires major arms manufacturers to trace their multi-tier supply chains and phase out Chinese rare earths, in a move aimed at ending years of reliance on cheap minerals from China, according to the South China Morning Post.

The order, signed on July 20, directs military contractors to shift away from Beijing-linked supply chains beginning in January 2027. While the directive does not name China explicitly, it stresses the need to maintain US military dominance "in an era of renewed great power competition," and says the United States must secure its supply chains against "physical, cyber, and economic subversion."

Coverage comparison

Reporting from the South China Morning Post frames the executive order as a national security measure. One report describes it as a "crackdown" on Chinese rare earths, with the lead emphasis on an enforcement push for national security gain. Another report, with a more formal tone, characterises the order as a step to "reduce dependence on China for defence-related critical minerals," focusing on securing America's defence supply chains.

Both accounts agree that the order tightens existing procurement rules and introduces new requirements for contractors. The executive order, titled "Securing America's Defence Supply Chains and Ensuring Domestic Acquisition of Critical Minerals," instructs military contractors to submit "formal mitigation" plans. These plans must identify non-compliant sources, document exhaustive efforts to find compliant material or prove none was available, and lay out steps to remove non-compliant sources from their supply chains.

The reporting also notes that the order significantly restricts the conditions under which the Department of Defence can issue waivers for defence-critical imports from China, Russia, Iran and North Korea.

Key claims

  • The executive order was signed by President Donald Trump on July 20, according to the South China Morning Post.
  • The order requires major arms manufacturers to trace their multi-tier supply chains and phase out Chinese rare earths, aiming to reduce dependence on China for defence-related critical minerals.
  • Contractors must shift away from Beijing-linked supply chains starting in January 2027.
  • China accounts for roughly two-thirds of global rare earth mining and about 90 per cent of refining, giving Beijing significant leverage over the supply chain, as reported by the South China Morning Post.
  • US defence procurement rules prohibit sourcing certain "covered materials" — ranging from rare earth magnets to newly added inputs like gallium and germanium — from adversary states, with exemptions available under waiver conditions.
  • Industry observers cited in the reporting view the directive not as a radical policy shift but as a "long-overdue enforcement crackdown" designed to inflict short-term contractor pain for long-term national security gain.
  • US analysts quoted in the material said market adjustments were manageable, though delivery timetables for future military hardware could slightly stretch. They also warned that true strategic independence would require sustained, long-term capital investment in non-Chinese midstream processing.