Overview

• The rules require state permits for technologies in extraction, processing and magnet production, extend to foreign plants using Chinese equipment, and cover exports of goods containing even trace amounts of Chinese rare earths, with semiconductor-related approvals handled case by case and denied for weapons makers.
• China’s dominance—about 70% of mining and 91% of refining of rare earths—raises stakes for defense, electronics and renewable industries worldwide.
• Officials present the move as targeted controls rather than a ban, describing a limited-impact system aligned with non‑proliferation obligations.
• President Trump threatened tariffs of up to 100% on Chinese goods and potential curbs on U.S. software supplies, then softened his tone and said he still plans to meet Xi at APEC.
• Europe is tightening economic‑security measures, with the Netherlands taking control of Chinese‑owned chipmaker Nexperia, as analysts link the dispute to broader rivalry over Taiwan and Pacific sea lanes and note China’s drive to bolster domestic capacity.