China has announced new restrictions on the export of rare earths and other key materials critical to advanced technology manufacturing, escalating trade tensions with the United States ahead of an anticipated meeting between President Xi Jinping and US President Donald Trump later this month.
The latest measures, unveiled by the Ministry of Commerce on Thursday, formalise and expand Beijing’s previous controls on rare earth processing technology and overseas cooperation. Under the new rules, foreign companies must now seek government approval to export any products containing rare earth elements — even in minimal quantities — and must disclose the intended use of these materials.
The ministry said the move is designed to “safeguard national security.” However, analysts view it as a strategic response to Washington’s restrictions on the sale of advanced chip-making equipment to China. The United States introduced those measures to slow China’s development of high-powered semiconductors that could have military applications.
China dominates the global rare earths market, processing roughly 90 percent of the world’s supply. These 17 chemically similar elements are essential for a wide range of high-tech applications — from smartphones and electric vehicles to wind turbines, solar panels, and jet engines. Despite their abundance in nature, rare earths are difficult and hazardous to extract and refine, giving China a near-monopoly in the global supply chain.
In addition to rare earths, the new regulations also apply to lithium batteries and certain types of graphite — both vital components in electric vehicles and renewable energy storage systems. Beijing’s announcement follows earlier moves in April to add several rare earth materials to its export control list, causing global supply shortages and heightened concerns among manufacturers.
The latest rules go further, prohibiting Chinese companies from collaborating with foreign entities on rare earth mining, processing, and magnet production without official approval. The export of technology used in mining, smelting, refining, and recycling these materials will also require licenses, along with activities such as equipment assembly, maintenance, and upgrading.
Trade experts suggest the timing of the announcement is deliberate. “China’s new regulations are specifically timed ahead of the Xi-Trump meeting,” said Alex Capri, a trade analyst. “Beijing is targeting key vulnerabilities in US electronics and weapons manufacturing, mirroring Washington’s earlier restrictions on China’s chip industry.”
The move is likely to have significant repercussions for the United States, which has a modest rare earth mining capacity but relies heavily on China for processing. It marks another turn in the growing economic rivalry between the world’s two largest economies — one increasingly defined by technological dominance and resource control.
