
Washington and China has significantly expanded its export controls on rare earth materials and other high-tech components, just ahead of an anticipated meeting between President Donald Trump and Chinese President Xi Jinping.
The Chinese Ministry of Commerce announced Thursday that starting November 8, any product containing certain Chinese-sourced rare earth elements — even in trace amounts — will require special export licensing. The new rules also apply to goods manufactured outside of China that use Chinese-origin materials or technologies.
This broad expansion of export restrictions adds five more rare earth elements — including Holmium and Erbium, which are crucial for laser and telecommunications technologies — to Beijing’s control list. It also tightens oversight of Lithium-Ion batteries, cathode materials, synthetic diamonds, and rare-earth production and processing equipment.
According to the Ministry, the policy is intended to “safeguard national security and interests.” Analysts, however, view the move as China’s latest attempt to flex its dominance over critical supply chains that power electric vehicles, jet fighters, smartphones, and advanced military technologies.
Crucially, the controls introduce a de facto “foreign direct product rule” — mirroring a strategy previously employed by the U.S. to block exports of semiconductors to Chinese firms like Huawei. Under this framework, even foreign-made products using Chinese raw materials or proprietary methods fall under China’s jurisdiction.
This could have sweeping implications for global manufacturers, who now must navigate a more complex regulatory environment if their supply chains are linked in any way to China’s rare earth ecosystem.
The announcement comes at a politically sensitive moment, as global attention turns to the expected face-to-face between Trump and Xi, their first high-level engagement since 2020. With trade, security, and technological competition on the agenda, Beijing’s latest move may serve both as a negotiating tool — and a warning.
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