Beijing’s latest export controls on rare earths are being seen as a strategic move to pressure the United States into lifting its restrictions on advanced computer chips to China. Analysts say the new measures highlight how China is using its dominance in the global supply of rare earth materials as leverage in ongoing trade tensions.
Rare earths are crucial for manufacturing everything from smartphones to fighter jets. China currently controls around 70% of global mining and nearly 90% of rare earth processing. The new restrictions, announced last week, will limit exports of 12 out of 17 rare earth elements starting November 8. They will also affect lithium batteries and materials used for industrial drills.
From December 1, companies worldwide will need licenses from Beijing to export any products containing even 0.1% of Chinese-origin rare earths. Experts say this sweeping measure underscores China’s intent to control all global flows of these critical materials.
According to trade analysts, China’s rare earth export controls mirror U.S. technology restrictions imposed under former President Donald Trump. The move, they believe, is designed to pressure Washington into relaxing chip-related export bans that have slowed China’s technological advancement.
Despite ongoing diplomatic dialogue, Beijing shows no sign of reversing its decision. Instead, it argues that the restrictions are necessary to prevent materials with potential military use from reaching the wrong hands.
Chinese officials have defended the policy as an effort to “protect national interests” and secure long-term control over strategic industries. Meanwhile, U.S. officials have warned that the controls could disrupt global supply chains and increase costs for tech and manufacturing industries.
Experts say the new rare earth export controls mark a turning point in the economic rivalry between the two superpowers. As the U.S. works to develop alternative supply chains, China’s latest move signals that it intends to maintain its dominance in rare earth production for years to come.
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