Beijing Expands Rare Earth Export Controls Before U.S.-China Talks

China Expands Rare Earth Export Controls Ahead of Trump-Xi Summit

China has tightened its rare earth export rules, a move that could disrupt global supply chains, drive up prices, and influence 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. Effective Dec. 1, the rules require foreign companies exporting products containing Chinese-origin rare earths—or related technologies—to obtain dual-use licenses from MOFCOM.

China dominates global rare earth production, which is critical for everything from consumer electronics to military applications. Analysts warn these restrictions could strain supply chains, particularly in AI, semiconductor, and EV sectors, potentially spurring a risk-off sentiment that may ripple into crypto markets.

“China just weaponized rare earths again, but this time globally,” said geopolitical strategist Velina Tchakarova. “Beijing now has effective veto power over key global chip, EV, and defense supply chains, including operations outside its borders.”

The move comes ahead of a planned meeting between President Xi Jinping and President Donald Trump at the APEC summit in South Korea later this month, giving Beijing additional leverage in trade talks.