China Tightens Rare Earth Export Controls Globally

China has imposed new restrictions on rare earth exports, targeting critical minerals production technologies and their overseas use, including for military and semiconductor applications. The move comes as Beijing engages in trade talks with the US and ahead of an expected meeting between Chinese leader Xi Jinping and President Donald Trump. The restrictions aim to safeguard national security and interests by preventing the materials from being used in military and other sensitive fields. The commerce ministry will reject license applications for military use and defense companies, and will review applications involving advanced computing and memory chips on a case-by-case basis.

China has announced new export controls on rare earth materials and related technologies, expanding its export control regime from raw materials to technology and intellectual property. The move is seen as a 'major upgrade' that will give Beijing greater leverage in negotiations with the US, particularly ahead of a meeting between Chinese leader Xi Jinping and US President Trump. The restrictions will take effect immediately and will require foreign entities exporting rare earth materials made in China to apply for a dual-use item export permit.

Chinese Foreign Minister Wang Yi visited Rome and assured Italian investors of China's commitment to a fair playing field, highlighting the benefits of China's next five-year plan, which focuses on moving towards a high-end and more open economy. Wang also announced an extension of Beijing's unilateral visa-free entry policy for Italian citizens. His visit aimed to strengthen trade bonds between China and Italy amid strained relations between Beijing and Brussels.

The US has added 15 Chinese companies to its restricted trade list for allegedly facilitating the purchase of American electronic components used in drones operated by Iranian proxies, including Hamas and Houthi militants. The move is part of a broader effort by the US to restrict the flow of components to Iranian-backed groups. The companies added to the list include subsidiaries of Arrow Electronics, a US-based components distributor. The US Commerce Department's Bureau of Industry and Security (BIS) has added a total of 29 entries to the Entity List, including companies based in Turkey and the United Arab Emirates.