China has announced new restrictions on exports of rare earth elements and related technologies, extending its control over materials vital to global high-tech and defense industries. The move comes just weeks before a planned meeting between US President Donald Trump and Chinese leader Xi Jinping.
The Ministry of Commerce said Thursday that foreign companies will now require special approval to export products containing even trace amounts of rare earths sourced from China. The new rules also include licensing requirements for technologies related to mining, smelting, recycling, and magnet production — with military-related applications expected to be denied outright.
China produces nearly 70% of the world’s rare earths and handles about 90% of global processing, giving Beijing significant leverage in global supply chains. Analysts say the tighter controls underscore China’s strategic use of critical minerals amid ongoing trade tensions with Washington.
“Beijing’s rare earth policy has become a powerful tool of economic and geopolitical influence,” said Gracelin Baskaran of the Center for Strategic and International Studies.
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US-based analysts warned the new measures could accelerate investments to build independent “mine-to-magnet” supply chains outside China. American companies, including MP Materials and Noveon, are already working to reduce reliance on Chinese suppliers, supported by over $500 million in recent US government investments.
The European Commission also voiced concern, urging China to remain a “reliable partner” and ensure predictable access to critical raw materials.
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Experts view Beijing’s decision as both a strategic move and an escalation in the ongoing trade war. “This should be a wake-up call for Washington to rebuild its rare earths industrial base,” said former US Commerce Department official Nazak Nikakhtar.
Source: AP