China has introduced sweeping new export rules on rare earths and related technologies. The move gives Beijing tighter control over materials vital to high-tech and defense industries. From now on, any product containing rare earths will require government approval before export. The new measures also cover mining, smelting, and magnet manufacturing, creating full oversight from the ground up. These changes mark one of China’s most assertive trade policies in recent years.
The timing is not accidental. The new rules arrive as global tensions rise over semiconductors and technology leadership. They give China a stronger position before the next round of talks between President Xi and former U.S. President Trump. By tightening its rare earth exports, China signals that it can influence global supply chains at will. The message is clear: control of critical resources equals political leverage.
Trump, Xi, and the Battle for Strategic Resources
The Trump-Xi meeting is set to take place amid rising trade friction. Both eaders are preparing to defend their national interests in technology and manufacturing. Trump has repeatedly accused China of weaponizing trade, especially through export restrictions. Xi, on the other hand, views these measures as essential to protect national security and maintain China’s technological independence.
Rare earths are now at the center of this strategic standoff. These materials power electric vehicles, wind turbines, and most importantly, semiconductors. The United States relies heavily on imports from China for refined rare earths. Trump’s administration has pledged to boost domestic production, but progress has been slow. As the summit approaches, both leaders are expected to discuss access to critical materials and the future of semiconductor cooperation.
China Consolidates Control Over Its Rare Earth Industry
Inside China, the government is reshaping the rare earth sector to ensure absolute control. It has reduced the pace of mining and smelting quotas, allowing only state-owned companies to expand operations. Smaller private firms now face tighter scrutiny and fewer opportunities to export. The government also banned the export of advanced processing and magnet-making technologies, effectively locking foreign competitors out of the most profitable stages of production.
This consolidation aims to secure supply for China’s own semiconductor and defense industries. It also prevents other nations from catching up technologically. At the same time, foreign companies operating in China report increasing delays in export licensing. Some even receive time-limited permits, forcing them to renew approvals every few months. This uncertainty creates new risks for global manufacturers that depend on rare earths for chips and high-performance electronics.
Semiconductor Sector Faces New Pressure
Rare earths are critical to semiconductor production. They are used in precision equipment, lasers, and specialty magnets that power chip fabrication. China’s decision to tighten exports sends shockwaves through global supply chains. Companies in the U.S., Japan, and Europe are now re-evaluating sourcing strategies. Many have started exploring alternative suppliers in Australia, Africa, and Canada—but scaling new production will take years.
Semiconductor firms are already feeling the strain. Delays in rare earth shipments have slowed equipment manufacturing and increased costs. Automakers and tech giants are stockpiling materials to avoid disruptions. Still, no other country can currently match China’s refining capacity or efficiency. The more Beijing tightens control, the more dependent the rest of the world becomes. This reality adds pressure on the Trump administration to secure long-term supply and reduce exposure to Chinese trade maneuvers.
Global Reactions and the Road Ahead
China’s rare earth policy has reignited the race for resource independence. The U.S. and its allies are working on joint strategies to diversify supply chains and build local refining capabilities. The European Union is pushing for new trade rules to reduce reliance on Chinese imports. India and Australia are ramping up investment in mining and magnet production. However, building the full infrastructure to rival China could take a decade or more.
Meanwhile, China shows no sign of easing its grip. Xi’s administration views rare earth dominance as a cornerstone of national security and economic resilience. Trump’s renewed focus on America-first industrial policy only deepens the divide. Both sides understand that the semiconductor era will define global power in the decades ahead. Rare earths are no longer just raw materials—they are the chips of a much larger geopolitical game.
