China Tightens Rare Earth Export Rules Ahead of Trump-Xi Meeting
China has expanded its rare earth export controls, a move that could disrupt global supply chains, push up prices, and impact both traditional and crypto markets.
The Ministry of Commerce announced new restrictions on rare earth materials, processing technologies, and derivative products used in semiconductors, AI systems, and defense. Starting Dec. 1, foreign companies exporting products containing Chinese-origin rare earths or related technologies will need dual-use licenses from MOFCOM.
China dominates global rare earth production, essential for everything from electronics to military applications. Analysts warn the move could strain supply chains, especially in AI, semiconductor, and EV sectors, potentially dampening risk sentiment and spilling over into crypto markets.
“China just weaponized rare earths again, but this time globally,” said geopolitical strategist Velina Tchakarova. The rules give Beijing effective control over key global chip, EV, and defense supply chains, including operations outside China.
The announcement comes ahead of a planned Xi-Trump meeting at the APEC summit in South Korea later this month, giving China leverage in trade discussions.
