China curbs rare earth exports, raising stakes before Trump-Xi talks

"BEIJING China introduced new restrictions on exports of rare earths and related technology on Thursday, in what analysts say is an attempt to boost Beijing's leverage in trade talks with the United States ahead of an upcoming leaders' meeting. The main target of the Ministry of Commerce's so-called "unreliable entities list" appears to be U.S. defense technology companies, which rely on rare earths from China. Halifax International Security Forum, an annual security summit held in Halifax, Canada, is also on the list."

"China processes around 90% of the world's rare earths, which are critical inputs in everything from smartphones to advanced fighter jets. Beijing has used its dominance in rare earths to apply pressure to the United States as trade friction intensified this year following Trump's "liberation day" tariffs. According to a string of announcements from the ministry on Thursday, the new rules expand the list of controlled rare earths that require licenses for export,"

China enacted new export restrictions on rare earths and related technology, adding entities to an "unreliable entities list" and targeting U.S. defense technology companies. The Halifax International Security Forum was placed on the list. The measures arrive shortly before an expected meeting between U.S. and Chinese leaders and follow intensified trade friction and recent U.S. tariffs. China processes roughly 90% of global rare earths, which are essential for consumer electronics and advanced military systems. New rules broaden controlled rare earth categories requiring export licenses, limit recycling and processing equipment exports, and curb use in overseas chip and military applications.

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