China is expanding its rare earth export controls to include foreign-manufactured items, requiring foreign exporters to secure licenses, escalating tensions with Washington.
- On Thursday, China's Ministry of Commerce announced that foreign manufacturers must obtain export licenses for items that incorporate rare earth elements sourced from China.
- These new restrictions represent a significant escalation in China's already stringent rare earth export controls, which have been a point of contention with the United States.
- The export license requirement will impact technologies related to rare earth extraction and the manufacturing of magnets, critical components in various high-tech industries.
Why It Matters
This move by China highlights the increasing geopolitical tensions over rare earth resources, which are vital for advanced technologies. As countries compete for access, the global supply chain for tech products may face significant disruptions.