China Sharpens Rare Earth Grip to Boost Leverage Ahead of Trump - Xi Meeting

China has moved to tighten control over its rare earth industry, expanding export restrictions to cover not just raw materials but also technologies and expertise. The Ministry of Commerce announced that, starting December 1, foreign entities must obtain government approval to export any product containing over 0.1% of Chinese-sourced rare earths or made using Chinese extraction and refining technologies.

The new rules also prohibit Chinese citizens from participating in overseas mining or magnet manufacturing without prior authorization. Applications tied to foreign militaries, entities on export-control lists, or technologies that could be used for weapons or terrorism will be denied.

Analysts say the policy marks China’s strongest step yet in using its dominance, about 70% of global supply. As strategic leverage. “Beijing knows it holds a powerful bargaining chip,” said Wendy Cutler of the Asia Society Policy Institute. The move could pressure Washington to ease tariffs or relax U.S. export curbs during future talks.

The restrictions arrive just weeks before a possible meeting between Presidents Trump and Xi at the APEC summit in South Korea. Observers view the announcement as a calculated prelude to renewed trade negotiations, highlighting China’s readiness to use economic tools in geopolitical strategy.

Despite tighter rules, Beijing will allow limited exemptions for humanitarian needs and existing contracts, giving companies time to adjust. Still, the decision underscores China’s intent to protect its technological edge and secure greater influence over global high-tech supply chains.