China escalates rare earth export controls amid U.S. trade tensions

China has tightened export controls on rare earth elements, requiring foreign companies to obtain government approval to export even small amounts and disclose their intended use. These materials are critical for high-tech manufacturing, including electric vehicles, smartphones, and military equipment, and China dominates both their production and processing. The new rules, which also restrict technology and collaboration, appear to target U.S. defense and electronics industries amid ongoing trade tensions. This move mirrors U.S. restrictions on chip-making equipment and comes ahead of a potential meeting between Xi Jinping and Donald Trump.

Source: adapted from BBC, October 2025.