China Tightens Grip on Rare Earths: Expands Export Controls
China has expanded control over rare earths exports, adding new elements and technologies to its list. These measures come ahead of a Trump-Xi summit, aiming to increase Beijing's leverage. The move has impacted global rare earth markets, highlighting the geopolitical tensions in technology supply chains.
In a strategic move to strengthen its hold over the global technology supply chain, China, on Thursday, bolstered its rare earths export controls. The tightening measures include five new elements and additional scrutiny for semiconductor users, signaling Beijing's intent to wield greater influence ahead of anticipated talks between Presidents Donald Trump and Xi Jinping.
China, the world's preeminent rare earths producer, has also added scores of refining technologies to its control list. Foreign producers using Chinese materials will now need compliance, a directive following U.S. calls to restrict chipmaking equipment to China. The enhancements come after export controls in April caused significant global shortages, which were later relieved by agreements in Europe and the U.S.
The Ministry of Commerce's unanticipated announcement has spurred reactions across global markets. Beijing's curbs on exports, announced without prior notice, appear timed to build leverage before the Trump-Xi meeting in South Korea. With China producing over 90% of processed rare earths, these materials are critical in a vast range of technologies, from electric vehicles to military equipment.
(With inputs from agencies.)
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