The Big Sip
Image: RFI
Controlling 90% of the world's supply of materials essential for every major technology, from EVs to fighter jets, creates trade leverage.
China's Ministry of Commerce expanded its rare earth export restrictions on 9 October 2025, banning defense exports, limiting semiconductor access, and requiring permission for any cooperation involving rare earths between China and overseas entities.
China accounts for over 90% of the world's rare earth production. These 17 elements are vital for electric vehicles, aircraft engines, and military radars. Beijing has the power to approve or deny access to materials that determine which countries can manufacture advanced technology.
Will Western countries accelerate domestic rare earth processing investments after this tightening?
Will China's case-by-case semiconductor approvals create leverage in ongoing chip export disputes with the US?
[Analysis] Karve International on China's rare earth processing advantages — China's rare earth industry produces high-quality products at better prices than competitors, with concentrated supply chains creating efficiency and reliability that make it "exceedingly difficult for western companies to compete."
The announcement came one day after US lawmakers called for broader chip export bans to China. It's amusing how monopolies recall their leverage when you threaten their customers.