China is set to tighten restrictions on rare earth minerals, extending export controls to items manufactured abroad that use materials sourced from the country. The move marks an escalation in tensions between Beijing and Washington over a sector critical to high-tech industries.
According to a statement Thursday from China’s Ministry of Commerce, foreign exporters whose products incorporate Chinese rare earths will now require an export license. The restrictions also cover technologies related to rare earth extraction, magnet manufacturing, and mineral recycling. Military applications of these resources are generally excluded from approval.
Rare earths, which are essential in everything from electric vehicles to defense systems, have long been a flashpoint in US-China trade relations. China produces roughly 70% of the world’s supply, giving it significant leverage in trade negotiations.
The announcement comes just weeks before a planned in-person meeting between President Donald Trump and Chinese leader Xi Jinping, raising the potential for renewed friction as both sides aim to finalize a broader trade deal.
Analysts say the expansion of export controls could complicate supply chains for technology and automotive manufacturers, many of which rely on rare earth components produced in China. The move is also likely to reinforce China’s position as a dominant player in global high-tech materials markets.
