China Enacts Strict Export Controls on Rare Earth Elements and Semiconductors

China has expanded restrictions on rare earth exports, introducing five new elements and increasing regulations on semiconductor materials. This strategic move, announced by Beijing on Thursday, is seen as an attempt to bolster its leverage before the upcoming meeting between President Donald Trump and President Xi Jinping.

The tightened controls require foreign entities using Chinese technology and materials to comply with the new rules, which are set to take effect in the coming weeks. The move has stirred responses from international companies and governments, pushing them to seek alternative sources for these critical components.

The decision echoes previous U.S. export restrictions on semiconductor products and comes amid escalating global efforts to diversify supply chains. Analysts view this as potential leverage for China in the ongoing talks with Washington, especially concerning rare earth elements crucial for technologies like electric vehicles and military applications.

(With inputs from agencies.)