BEIJING — Chinese rare earth magnet companies have faced increased scrutiny on export license applications since September, even before Beijing’s recent expansion of controls on critical minerals, according to sources familiar with the matter.

The longer review process raises questions about whether China, the world’s top supplier of rare earths, is intentionally limiting shipments—despite a May trade truce with the U.S. that pledged faster exports.

Sources said applications are being returned more frequently with requests for additional information, though approvals generally remain within the commerce ministry’s 45-business-day deadline. The heightened scrutiny is reminiscent of April 2024, during the height of the trade war, when delays caused magnet shortages and disrupted automotive factories.

Data released Monday showed China’s rare earth exports fell 31% in September, although it is unclear how much of the decline involved magnets specifically. Exports of rare earth magnets had dropped sharply in April and May but rebounded over the summer.

Beijing’s tighter controls, set to take effect on November 8, have prompted a surge of inquiries from foreign clients seeking to ship orders before the new rules. Adam Dunnett, Secretary-General of the EU Chamber of Commerce in China, said members remain concerned about bottlenecks in export approvals, with some companies experiencing extended delays without explanation.

Rare earths, a group of 17 elements, are essential in products ranging from electric vehicles and wind turbines to military radar systems, and China maintains strict control over their export.