【By Observer News, Xiong Chaoran】On October 9, the Chinese Ministry of Commerce issued two announcements regarding the strengthening of export controls on rare earth-related items. Some foreign media clearly couldn't sit still.

On that day, the U.S. "Wall Street Journal" published an article stating that China's latest measures related to rare earths are considered a nearly unprecedented export control, giving it greater leverage in trade negotiations.

"These rare earth minerals and their refining capabilities are the foundation of modern civilization," said Dean Ball, who recently stepped down as a White House advisor on artificial intelligence (AI) policy and is now a senior researcher at the American Innovation Foundation. Given the importance of AI capital expenditures to the economy, if these regulations are strictly enforced, they could lead to a recession in the U.S. economy.

"This is like an economic nuclear war - an intention to destroy the U.S. AI industry," said Dmitri Alperovitch, co-founder of the U.S. think tank "Silverado Policy Accelerator," when speaking to the "Wall Street Journal."

On October 9 local time, President Trump of the United States stated at a White House cabinet meeting that Treasury Secretary Bassett and Commerce Secretary Lutnick would discuss response plans. "We import a lot of goods from China, perhaps we have no choice but to stop doing so," Trump even threatened. A White House official then revealed that China's new regulations were announced without prior notification to the U.S.

On October 9, 2025, in Washington, D.C., U.S. President Trump delivered a speech at a White House cabinet meeting. Visual China

Rare earth metals and magnets are core materials for high-tech products such as smartphones, electric vehicles, and fighter jets. China has long realized their importance, spending decades to establish a leading position globally in rare earth mining and processing. Data shows that China controls about 70% of global rare earth mining, 90% of separation and processing, and 93% of magnet manufacturing.

According to the new regulations published by the Chinese Ministry of Commerce on October 9, China will impose export controls on certain rare earth-related items abroad that contain Chinese components and rare earth-related technologies. The UK's "Financial Times" reported that this means any magnet produced using Chinese rare earth components or Chinese rare earth mining, smelting, and magnet-making technology must obtain Chinese approval before being exported by foreign companies.

The new regulations cover rare earth magnets and some semiconductor materials manufactured abroad containing 0.1% or more Chinese heavy rare earth components, as well as items produced overseas using technologies related to Chinese rare earth mining, smelting, metal smelting, magnet production, and recycling of rare earth secondary resources. These items will be subject to the new regulations starting December 1; for some items originally from China, the new regulations will take effect immediately.

In addition, China will "principally not approve" most export licenses for military use. Export applications involving the development of AI with potential military use will also be "reviewed on a case-by-case basis."

U.S. media believe that the semiconductor supply chain is especially vulnerable to China's actions, as large chip factories rely on an ecosystem of companies providing specialized equipment, complex processes, and final packaging.

Previously, both the Trump and Biden administrations had supported this industry through subsidies and other policies, but domestic capacity remains in its early stages. "This is a real pain point for U.S. AI companies," said Joseph Hoefer, Chief AI Officer at the lobbying firm Monument Advocacy.

In April this year, after the Trump administration imposed excessive tariffs on Chinese goods, China promptly included rare earth items in the scope of export controls. Foreign media generally believe that China's export control measures on rare earths have hit the U.S. automotive supply chain, forcing the Trump administration to sit at the negotiating table. Since then, the rare earth issue has repeatedly appeared in multiple rounds of Sino-U.S. trade negotiations, and the timing of the release of this new regulation coincides with the expected time of a meeting between the leaders of the two countries.

"The timing of this decision is very strategically significant," said Gracelin Baskaran, a key mineral expert at the U.S. Center for Strategic and International Studies (CSIS), analyzing, "China has just placed another new piece on the negotiation table."

The "Wall Street Journal" cited hints from some former government officials and experts that the U.S. may respond by increasing tariffs, cutting off China's access to Western semiconductor manufacturing equipment, and accelerating the development of domestic rare earth capacity.

A thermos made by U.S. companies using Chinese rare earths. Visual China

Currently, the U.S. imposes tariffs on Chinese goods ranging from 30% to 50%, higher than the levels achieved in trade agreements with Vietnam, Japan, and Indonesia. The average tariff on Chinese exports to the U.S. is approximately 33%.

The South China Morning Post reported that in order to reduce dependence on Chinese rare earths, the U.S. has increased efforts to boost domestic production and adopt alternative materials, while also seeking strategic partnerships with third countries. However, China's new announcement may hinder these efforts of the U.S.

Baskaran commented that China's new regulations obviously pose a challenge to the plans of the U.S. and its allies to build their own industrial chains, while also preventing any potential "technology capability leakage" during collaborations between Chinese enterprises and foreign counterparts.

Reuters also pointed out that on the day before China released the new regulations, U.S. lawmakers again called for a broader ban on exporting chip manufacturing equipment to China.

The "Wall Street Journal" cited sources who indicated that although China's decision is seen as a countermeasure against recent U.S. export controls on Chinese tech companies, there is also hidden competition behind it. Sources believe that China is trying to strengthen its influence over Trump in order to force him to make concessions on tariffs and technology controls.

Additionally, the spokesperson for the Ministry of Commerce responded to questions regarding the talks between China and the U.S. in Spain, stating that both sides will discuss the U.S.'s unilateral tariff measures, abuse of export controls, and issues such as TikTok. The report stated that China's latest rare earth measures are part of a strategy aimed at getting the U.S. to cancel tariffs and export controls.

Reuters noted that on October 9, in addition to issuing two announcements regarding the strengthening of export controls on rare earth-related items, China also announced several other announcements on that day. Not only did it add several new rare earth elements and dozens of rare earth processing equipment to the export control list, but it also involved super-hard materials, lithium batteries, and artificial graphite anode materials. The report believes that these measures are important for Sino-U.S. trade negotiations and will help enhance China's influence.

On October 9, the spokesperson for the Ministry of Commerce responded to inquiries regarding the strengthening of export controls on rare earth-related items, stating that rare earth-related items have dual-use characteristics and implementing export controls is a common international practice. Therefore, the Chinese government legally implements controls on certain rare earth-related items abroad that contain Chinese components, aiming to better safeguard national security and interests, and better fulfill international obligations such as non-proliferation.

As a responsible major country, China's implementation of controls on relevant items reflects its firm commitment to maintaining world peace and regional stability, and actively participating in international efforts to prevent proliferation. China is willing to strengthen communication and cooperation with all parties through multilateral and bilateral export control dialogue mechanisms, promote compliant trade, and ensure the safety and stability of the global supply chain.

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Original: https://www.toutiao.com/article/7559482735539094054/

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