Rare Earth Export Limits Increase as China Prepares for Trump-Xi Talks

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

China has announced expanded controls on rare earth exports, a move that could disrupt global supply chains, push up prices, and weigh on both traditional and crypto markets.

The Ministry of Commerce will restrict exports of rare earth materials, processing technologies, and derivative products used in semiconductors, AI systems, and defense. Starting Dec. 1, foreign companies exporting products containing Chinese-origin rare earths or related technologies must obtain dual-use licenses from MOFCOM.

As the dominant global producer of rare earths, China’s new rules could strain supply chains for semiconductors, EVs, turbines, and defense technologies. Analysts warn this may pressure risk sentiment, with potential spillovers into tech stocks and crypto markets.

“China has weaponized rare earths again, this time on a global scale,” said geopolitical strategist Velina Tchakarova. She added the rules give Beijing veto power over critical supply chains, including operations outside its borders.

The timing coincides with an expected meeting between President Xi Jinping and President Donald Trump at the APEC summit in South Korea later this month, potentially boosting China’s leverage in trade discussions.