China Tightens Grip on Rare Earth Exports Amid Global Tensions

In a move that could reshape the global trade landscape, China has announced more stringent export controls on rare earth materials, targeting technologies in mining, smelting, and processing. This decision by China's Commerce Ministry aims to curb the use of these materials for foreign military purposes, placing stricter measures on the exportation of related technologies.

China controls approximately 70% of the world's rare earth mining and 90% of processing capabilities. The country's dominance makes it a vital player in supplying these resources, essential for modern industries like automotive, electronics, renewable energy, and defense. This announcement arrives as US, EU, and India remain top importers and will undoubtedly influence ongoing trade discussions.

The timing of these new restrictions is crucial, coinciding with upcoming trade talks between China and the US. Discussions will likely be influenced by these measures, especially following US President Donald Trump's earlier tariffs and subsequent trade deal. China's statement clarified that humanitarian aid scenarios would be exempt from these controls, ensuring rare earths' availability for medical emergencies.

(With inputs from agencies.)