China Tightens Rare Earth Export Controls Amid Trade Tensions with US
China has announced stricter export controls on rare earths and other key materials used in advanced technology. These resources are vital for making products like solar panels, electric cars, and smartphones. The move comes as trade negotiations with the United States continue to intensify.
The country processes about 90% of the world’s rare earths. This dominance gives Beijing a powerful tool in global trade discussions. For example, it could influence talks ahead of the upcoming meeting between President Xi Jinping and US President Donald Trump.
New Export Rules for Foreign Companies
The Chinese government has now formalised its export restrictions. Previously, Beijing had limited overseas cooperation and the transfer of processing technology. However, the new rules take these controls further.
Foreign companies must now obtain government approval before exporting any products containing rare earth materials. In addition, they must clearly state how these materials will be used. This added layer of regulation could impact global supply chains and increase production costs for tech manufacturers.
Experts believe China’s move is both economic and strategic. By tightening control, Beijing aims to secure its technological edge while using rare earths as leverage in trade talks. As a result, international companies may need to reassess their sourcing strategies to reduce dependence on China.
