China Intensifies Rare Earth Export Controls

China has announced tighter controls on rare earth exports, extending restrictions on processing technology to limit exports to foreign defense and semiconductor sectors. This strategic move aims to bolster Beijing's leverage in trade negotiations with the United States.

The Ministry of Commerce clarified the targets of China's export limitations, specifying that overseas defense users would be barred from obtaining licenses. Applications related to advanced semiconductors will be considered on a case-by-case basis. This comes amid ongoing global shortages of rare earth elements, despite recent easing after deals with Europe and the U.S.

China, producing over 90% of the world's rare earths, will now require export licenses for technology related to rare earth recycling and limit exports of certain components. This decision could impact international companies reliant on Chinese rare earths, requiring them to seek export licenses for controlled items.

(With inputs from agencies.)