China tightens rare earth minerals exports before key Xi-Trump summit

China has announced tighter export controls on rare earth elements, effective December 1, 2025. Foreign companies will now need special permits to export items using Chinese-sourced rare earths or related technology. The move comes just before the high-stakes Xi-Trump Summit in South Korea. It suggests China is using its control of 70% of global mining and over 90% of processing to strengthen its negotiating position.

Rare earths are vital for smartphones, electric vehicles, wind turbines, and defense systems. The new rules could disrupt global supply chains. The upcoming summit may become a key moment for international trade and technology.

What Are Rare Earth Minerals?

Rare earth elements (REEs) are 17 chemically similar elements crucial for high-tech devices. They are used in smartphones, EV batteries, wind turbines, and military equipment. Despite their name, rare earths are relatively common in the Earth’s crust. But they are rarely found in concentrations suitable for mining, making extraction complex and expensive.

China dominates the global rare earth market. In 2025, it accounted for roughly 70% of mining and over 90% of processing. This gives China significant influence in the tech and defense sectors.

Details of China’s Export Tightening

China’s new rules are a strategic move to control its rare earth resources. Foreign companies now need permits to export products containing Chinese-sourced rare earths or related technology.

These restrictions expand on earlier limits introduced in April 2025, which already disrupted supply chains and heightened U.S.-China tensions. The updated rules now cover more rare earths and technologies, including recycling and magnet production.

Enforcement will be strict, with China citing national security and preventing unauthorized military use of its resources.

Connection to the Xi-Trump Summit

The timing of China’s move is linked to the Xi-Trump Summit. The meeting will focus on trade tensions and technology issues. Analysts see China’s export controls as a bargaining tool. By controlling rare earth supplies, it can influence discussions on tariffs, tech transfers, and other critical trade issues.

The summit may reshape U.S.-China relations. Its outcome could have major effects on industries dependent on rare earths and on global geopolitical dynamics.

Global Market and Economic Impact

China’s export restrictions could significantly affect global markets. Industries like electronics, renewable energy, and defense may face higher costs and supply chain disruptions.

U.S. and other international companies dependent on Chinese rare earths could experience delays and extra expenses due to the new licensing rules.

To cope, nations and corporations are looking for alternative sources and exploring domestic production. But building independent supply chains requires time, investment, and planning.

Strategic and Geopolitical Implications

China’s rare earth controls highlight their strategic importance. By restricting access, China strengthens its global leverage in trade and diplomacy. The U.S. and other countries are taking action to reduce dependency. Efforts include domestic mining, partnerships with other resource-rich nations, and developing recycling technologies.

Still, moving away from China is challenging due to technological, economic, and political hurdles. Rare earth supply chains will remain a key factor in future geopolitical and economic strategies.

Conclusion

China’s new export controls are a major development in U.S.-China trade relations. The timing, just before the Xi-Trump Summit, shows a calculated move to leverage control over critical resources. The restrictions could affect industries worldwide and force nations to rethink supply chains. Rare earths will continue to influence international trade policies and geopolitics.

The Xi-Trump Summit may set the tone for future U.S.-China relations and have lasting effects on the global economy. As trade, resources, and diplomacy intersect, the world will be watching closely.

Disclaimer:

This content is for informational purposes only and is not financial advice. Always conduct your research.