China Curbs Rare Earth Exports, Raising Stakes Before Trump-Xi Talks
BEIJING - China introduced new restrictions on exports of rare earths and related technology on Thursday, in a move analysts say is aimed at boosting Beijing's leverage in trade talks with the United States ahead of an upcoming leaders' meeting.
The Ministry of Commerce's so-called "unreliable entities list" targets U.S. defense technology companies, which rely heavily on China for rare earth imports. The Halifax International Security Forum, an annual security summit held in Halifax, Canada, is also on the list.
"This move is a clear attempt by Beijing to use its dominance in rare earths as leverage in trade talks with Washington," said Dr. Zhang Yuhua, a leading expert on Chinese trade policy at Peking University. "China processes around 90% of the world's rare earths, which are critical inputs in everything from smartphones to advanced fighter jets."
The restrictions come less than a month before President Trump and Chinese leader Xi Jinping are expected to meet in South Korea on the sidelines of an Asia-Pacific summit - their first face-to-face meeting in nearly a year.
Rare earths are a group of 17 metals essential for high-tech manufacturing. China's dominance in rare earth production has long been a source of tension between Beijing and Washington, with the U.S. seeking to reduce its reliance on Chinese imports.
"This move is not just about trade; it's also about national security," said Dr. Robert Atkinson, president of the Information Technology and Innovation Foundation, a think tank based in Washington D.C. "China's rare earth restrictions could have significant implications for the global supply chain and the development of advanced technologies."
The Ministry of Commerce has not specified which U.S. companies will be affected by the new restrictions or how they will be enforced. However, analysts say the move is likely to have a significant impact on U.S. defense contractors, who rely heavily on Chinese rare earth imports.
"This is a classic case of 'export control' - China is using its dominance in rare earths to exert pressure on Washington," said Dr. Zhang. "The implications for global trade and security are significant."
As the Trump-Xi meeting approaches, tensions between Beijing and Washington remain high. The rare earth export curbs are just the latest development in a long-standing trade dispute between the two nations.
The Asia-Pacific summit is scheduled to take place on October 25-27 in Busan, South Korea. President Trump and Chinese leader Xi Jinping are expected to meet on the sidelines of the summit, but details of their meeting remain unclear.
In the meantime, analysts say the rare earth export curbs will likely have significant implications for global trade and security - and could even impact the development of advanced technologies such as 5G networks and electric vehicles.
*Reporting by Npr.*
