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China New restrictions on exports of rare earths and related technologies were outlined on Thursday, ahead of a meeting later this month to increase controls on the use of elements critical to many products. chairman donald trump and Chinese leaders Xi Jinping,
Rules announced by the Commerce Ministry require foreign companies to seek special approval to export goods that contain even trace amounts of rare earth elements sourced from China.
Beijing It added that permitting requirements will also be applied to exports of technologies related to rare earth mining, smelting, recycling and magnet making.
China accounts for about 70% of the world’s rare earth mining. It also controls approximately 90% of global rare earth processing. Access to such materials is a major point of contention in trade talks between Washington and Beijing.
As Trump has raised tariffs on imports of many products from China, Beijing has doubled down on controls on the strategically important mineral, raising concerns over potential shortages for producers in the US and elsewhere.
It was not immediately clear how China planned to implement the new policies abroad.
Critical minerals are used in a wide range of products from jet engines, radar systems and automotive to consumer electronics including laptops and phones.
The Commerce Ministry said the new restrictions are to “better safeguard national security” and prevent the use in “sensitive areas such as the military” of rare earths processed or obtained from China or related technologies.
It said some unidentified “foreign entities and individuals” had transferred rare earth elements and technologies from China abroad for military or other sensitive uses, causing “significant harm” to its national security.
The new sanctions were announced just weeks before an expected meeting between Trump and Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation forum in South Korea in late October.
“Rare earths will remain an important part of the conversation for Washington and Beijing,” George Chen, partner at The Asia Group, said in an email comment. “Both sides want more stability but there will still be a lot of noise before the two leaders, Presidents Trump and Xi, meet next year to reach a final agreement. All these noises are negotiating tactics.”
In April, shortly after Trump unveiled his massive tariffs on several trading partners, including China, Chinese officials imposed export restrictions on seven rare earth elements.
While supply remains uncertain, China approved some permits for rare earth exports in June and said it was accelerating its approval processes.