China tightened export controls on rare earths, giving Beijing a major bargaining chip ahead of a potential meeting between Chinese leader Xi Jinping and US President Donald Trump this month.
The move threatens to reverse a thaw in relations between Beijing and Washington, which have traded punitive tariffs in recent months.
China produces and refines the vast majority of the world’s supply of rare earths, key in several industries, including defense and semiconductor manufacturing. Aware of its dependency on China, the US recently unveiled a $5 billion fund to secure access to rare earths elsewhere, though experts fear the move comes too late to close the gap, the South China Morning Post reported.
A chart showing China’s dominance in the critical mineral sector.
