China ramps export controls
Beijing has sharply increased its use of export controls over the past five years, shifting toward targeted restrictions on key inputs rather than blanket tariffs. The rise in export controls has prompted the EU Chamber in China to urge Brussels not to be a ‘passive recipient’ of US‑China trade tensions, and Chinese officials have warned of countermeasures if Washington imposes tariffs tied to alleged military exports. At the same time, official sources report China’s first‑quarter foreign trade rose about 15% year‑on‑year, a statistic Beijing is using alongside its trade posture. (ft.com) (scmp.com) (english.news.cn) (news.cgtn.com)
China has turned export controls into a central trade weapon, tightening access to rare earths and other strategic inputs as pressure from Washington builds. (ft.com) The Financial Times reported that China imposed export restrictions 30 times from 2021 through 2025, nearly triple the number recorded in the previous five years. The shift has been away from broad tariffs and toward controls on specific materials, parts and technologies. (ft.com) One recent example came on April 4, 2025, when China’s Ministry of Commerce and the General Administration of Customs announced export controls on some medium and heavy rare earth items. The English-language notice said exporters must apply for licenses under China’s Export Control Law and dual-use rules. (english.mofcom.gov.cn) The European Union Chamber of Commerce in China said on April 14 that Brussels should not be a “passive recipient” of United States-China trade arrangements that affect European companies. Chamber president Jens Eskelund said Europe “simply cannot wait” as firms try to manage the fallout from Chinese export controls. (scmp.com) That warning lands as Europe is still heavily exposed to Chinese supplies in sectors tied to magnets, batteries, electronics and industrial inputs. The chamber has already said one in three surveyed members were looking to divert sourcing away from China to reduce export-control risk. (europeanchamber.com.cn) Beijing is also linking its trade posture to a broader national-security framework. Bloomberg reported on April 7 that China issued new supply-chain security rules that allow retaliation against foreign entities that impose curbs on trade. (bloomberg.com) On April 14, Foreign Ministry spokesperson Guo Jiakun said China would respond if the United States imposed tariffs tied to allegations that Beijing had supplied military products to Iran. He called the reports “purely fabricated” and said China acts “prudently and responsibly” on military exports under its export-control laws. (mfa.gov.cn) At the same time, Chinese officials are pointing to stronger trade data. Xinhua, citing the General Administration of Customs, said first-quarter goods trade rose 15 percent from a year earlier to 11.84 trillion yuan, with exports up 11.9 percent to 6.85 trillion yuan and imports up 19.6 percent to 4.99 trillion yuan. (english.news.cn) State broadcaster China Global Television Network called that the fastest first-quarter trade growth in five years. Beijing is using that number to argue that tighter controls on strategic exports have not stopped overall trade from expanding. (news.cgtn.com) The next test is whether China keeps widening the list of controlled inputs or uses licensing delays more aggressively. For Europe and the United States, the issue is no longer only tariffs on finished goods, but who can still get the materials that factories need first. (ft.com)
