The Chinese government tightened its control over rare earth exports which transformed the global trade war landscape because Beijing uses strategic supply chains to counter U.S. trade restrictions.
China implemented its new licensing framework for rare earth exports in April which duplicates the export restrictions the United States has imposed on Chinese technological development. The Chinese government has established this export control system through precise measures to control foreign companies that need rare earth components for electric vehicle motors and defense equipment.
The Grandview Institution scholar Zhu Junwei explained that China has developed its export control system since years ago by following the U.S. sanctions model. The system functions as a last resort but delivers powerful results.
The discussion between Presidents Trump and Xi Jinping on Thursday focused on export controls yet it remains uncertain if China will expedite rare earth magnet licensing following U.S. export restrictions on chip design software and jet engines. Trump declared they were resolving certain matters yet he failed to provide any specific information.
The country controls almost all rare earth magnet production which serves as a vital component for electric vehicles and advanced military systems. Through its export rule restrictions Beijing acquires better supply chain chokepoint understanding while enhancing its position in rising trade tensions.
China demonstrates its readiness to strongly defend its industrial power through this recent development which transformed its defensive trade stance into an offensive strategy against rising trade conflicts.
