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

China has significantly tightened its grip on the global rare earth market by expanding its export control list, just weeks before a crucial summit between US President Donald Trump and Chinese President Xi Jinping in South Korea.

The Chinese Commerce Ministry has added five new rare earth elements – holmium, erbium, thulium, europium, and ytterbium – along with dozens of refining and processing technologies, to its regulated materials.

These elements are vital for producing electric vehicles, military radars, and aircraft engines. The new regulations, effective from 8 November, mandate a Chinese export license for any foreign company using Chinese materials or equipment, even if no Chinese firm is directly involved.

Analysts suggest this move aims to increase China’s leverage in the upcoming high-level talks. The restrictions also target defence end-users and semiconductor firms, specifically impacting 14 nanometre and above chips, high-capacity memory chips, and AI technologies with military applications. This has led to global uncertainty, with shares of Chinese rare earth companies surging.