China has announced stricter export controls on rare earth elements and other critical materials vital for global technology and defense industries, intensifying trade tensions with the United States ahead of an expected meeting between President Xi Jinping and U.S. President Donald Trump.
Under the new rules, foreign companies must obtain government approval to export products containing even small quantities of rare earths and disclose their intended use. Beijing said the move aims to «safeguard national security,» though analysts view it as a strategic response to Washington’s restrictions on semiconductor exports to China.
The regulations, formalized by the Ministry of Commerce, extend to lithium batteries, graphite, and other materials used in electric vehicles, jet engines, and advanced electronics. Chinese firms are also prohibited from collaborating with foreign companies on rare earth projects without state authorization.
The tightened rules specify that the export of mining, smelting, and magnet-making technologies now requires special permits — effectively limiting the flow of critical know-how out of China.
China dominates the rare earths supply chain, processing about 90% of global output, according to the International Energy Agency. The country’s control over these materials gives it a powerful geopolitical lever, as the U.S. struggles to expand its own processing capacity despite having rare earth deposits.
Trade experts say the move mirrors the U.S. export bans on chip-making equipment to China, marking a new phase in the global technology rivalry. «Beijing is targeting key vulnerabilities in U.S. electronics and weapons manufacturing,» said trade analyst Alex Capri, adding that the timing of the announcement appears deliberate ahead of the high-level talks later this month.
