China Tightens Rare Earth Export Controls Ahead of Trump-Xi Summit
China has expanded its rare earth export restrictions, a move that could disrupt global supply chains, raise prices, and impact both traditional and crypto markets.
The Ministry of Commerce announced new rules on rare earth materials, processing technologies, and derivative products used in semiconductors, AI systems, and defense. Effective 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 create supply constraints, particularly in AI, semiconductor, and EV sectors, potentially dampening risk sentiment and spilling over into crypto markets.
“China has weaponized rare earths globally,” said geopolitical strategist Velina Tchakarova. “The rules give Beijing veto power over key 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 additional leverage in trade talks.
