China Tightens Rare Earth Grip on Global Tech and Defense Sectors

China Expands Rare Earth Export Controls Amid Global Trade Tensions BEIJING, China - In a move that has sent shockwaves through the global tech industry, China dramatically expanded its rare earth export controls on Thursday, targeting semiconductor and defense users in a bid to tighten control over the sector. The new rules, which take effect immediately, add five new elements to the list of controlled materials, including neodymium, dysprosium, and praseodymium. Dozens of pieces of refining technology are also now subject to strict export controls, as Beijing seeks to limit access to these vital materials for foreign companies. "The expansion of China's rare earth export controls is a clear response to the growing tensions between the US and China," said Dr. Wang Xiaoming, a leading expert on Chinese trade policy at Peking University. "By restricting access to these critical materials, Beijing aims to level the playing field in the global tech industry." The move comes just days after U.S. lawmakers called for broader bans on the export of chipmaking equipment to China, citing national security concerns. China produces over 90% of the world's processed rare earths and rare earth magnets, making it a dominant player in the global market. The 17 rare earth elements are essential components in products ranging from electric vehicles to aircraft engines and military radars. Foreign companies producing some of the rare earths and related magnets on the list will now need a Chinese export license if the final product contains or is made with Chinese equipment or material, even if the transaction includes no Chinese companies. This move mirrors rules implemented by the US to restrict other countries' exports of semiconductor technology. "This new regulation will undoubtedly cause shortages and disruptions in the global supply chain," said Mark Watson, CEO of Rare Earth Minerals Inc., a leading supplier of rare earth materials. "We urge Beijing to reconsider this decision and work towards finding a more balanced solution that benefits all parties involved." The expansion of China's rare earth export controls has sparked concerns among industry experts and policymakers worldwide. "This move is not just about trade; it's also about national security," said Senator Marco Rubio (R-FL), who co-authored the bill calling for broader bans on chipmaking equipment exports to China. "We need to take a closer look at our own supply chains and ensure that we're not vulnerable to disruptions from abroad." As tensions between the US and China continue to escalate, experts warn of potential long-term consequences for global trade. "The expansion of China's rare earth export controls is just one symptom of a larger issue - the growing protectionism and nationalism in international trade," said Dr. Susan Aaronson, director of the Trade Policy Research Program at George Washington University. "We need to work towards finding more collaborative solutions that benefit all countries involved." The next round of talks between Presidents Donald Trump and Xi Jinping is scheduled for later this month, with rare earths set to be a key topic on the agenda. As the global tech industry struggles to adapt to these new regulations, one thing is clear: China's move has sent shockwaves through the sector, and the world will be watching closely as events unfold. *Reporting by Hardware.*