15th May: China’s rare earth export controls continue15 May 2025 13:47
SHENZHEN – Even as China and the US roll back tariffs and other trade salvos amid a 90-day truce, there is one powerful source of leverage that Beijing appears to be retaining: the control of its exports of critical minerals, including rare earths.
China’s Commerce Ministry said on May 12, the same day that details of the US-China agreement were announced, that strengthening export controls of strategic mineral resources was crucial to national security.
A ministry spokesman said that smuggling activity had been detected after China implemented export controls, and that China had launched a campaign to crack down on such moves.
Also that day, a social media account affiliated with state broadcaster CCTV published a post titled “China’s rare earth export controls continue”.
Beijing had in April slapped export controls on some rare earth minerals, a move seen as part of its retaliatory measures against the US’ tariff hikes that were announced that same month.
These curbs, which have come into focus given China’s near chokehold on the supply of rare earths, are Beijing’s latest restrictions on the outflow of such minerals used in everything from semiconductors and green technology to the defence industry. Since 2023, China has imposed export controls on a growing number of critical minerals and their products.
Just as the US has been squeezing China with its restrictions on the sale of advanced chips and chip-making equipment to the Asian economic powerhouse, Beijing sees access to these strategic substances as a lever it can use.
https://www.straitstimes.com/asia/china-retains-rare-earths-export-controls-as-bargaining-chip-amid-trade-war-truce-with-us
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