China’s Rare Earths Power Play: Tighter Controls in High-Tech Supply Chain

China has issued new interim measures this Friday that impose stricter controls on the mining and processing of rare earth elements. These materials, essential for high-tech products such as electric vehicles and fighter jets, now require tighter compliance protocols, including government approval and accurate reporting by companies.

This move is seen as China's strategic response to U.S. restrictions on its access to American technology. The measures have sparked concerns about potential supply shortages, affecting U.S. manufacturers among others. Beijing has cited national security and non-proliferation as key motives behind these new regulations.

Dominating the global rare earths market, China supplies around 90% of the world's requirements despite mining only 70% of the materials. With nearly half of known reserves and advanced processing technologies, China's latest rules could further entrench its control over the sector amid ongoing trade tensions with the United States.

(With inputs from agencies.)