China's Tightening Grip: Rare Earth Export Curbs Expand Amid Trade Tensions
China announced new restrictions on rare earth exports, requiring foreign companies to seek special approvals. Accounting for the majority of global production and processing, China's controls come ahead of a Trump-Xi meeting. These measures aim to protect national security and address concerns in international trade negotiations.
China has intensified its grip on rare earth exports, announcing fresh regulations that require foreign companies to obtain special approvals. These restrictions extend to any exports containing even minimal traces of rare earth elements sourced from China. The move, revealed by the Ministry of Commerce, also introduces permits for technologies related to rare earth mining and processing.
With China dominating the global market, accounting for nearly 70% of mining and 90% of processing, the new curbs are noteworthy. They come in the lead-up to a significant meeting between President Donald Trump and Chinese leader Xi Jinping. The critical minerals are essential for products ranging from military equipment to electronics, posing significant implications for international manufacturers.
This strategic move highlights China's defensive stance amid ongoing trade tensions with the United States, particularly in response to tariffs imposed by Trump. While the true impact on global supply chains remains uncertain, the upcoming talks in South Korea could be pivotal in shaping future trade dynamics.
(With inputs from agencies.)
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