# Datacenters face direct hit from China rare earth curbs, as clock runs out on escalated licensing chokeoff

- URL: https://talkfuse.com/story/datacenters-face-direct-hit-from-china-rare-earth-curbs-as-clock-runs-out-on-escalated-licensing-chokeoff/
- Published: 2026-08-28T13:01:14+00:00
- Updated: 2026-08-28T13:18:18+00:00
- Original publisher: The Register
- Original article: https://www.theregister.com/systems/2026/08/28/datacenters-face-direct-hit-from-china-rare-earth-curbs-as-clock-runs-out-on-escalated-licensing-chokeoff/5293257
- Topics: Art, Asia, Culture, World

## Key points

- China’s rare-earth controls may affect datacentre equipment supplies.
- Yttrium exports are reportedly down 75 per cent.
- November’s policy decision could tighten the supply squeeze.

## Summary

China’s rare-earth export controls could soon disrupt datacentre supply chains, particularly for components relying on yttrium and erbium. The issue matters because these materials are used in optical networking, displays, capacitors and other electronics, while Beijing must decide in November whether to maintain or reinstate stricter licensing rules.

Yttrium exports from China are reportedly down about 75 per cent compared with 2025, and China processes all mined yttrium ore into usable forms while supplying all erbium oxide, according to IEEE Spectrum. Tougher controls, suspended for 12 months after US–China trade talks in November 2025, could be extended to more materials; US initiatives including investments, international agreements and a planned strategic reserve may reduce dependence eventually, but are unlikely to offer immediate relief.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.