China widens rare-earth controls
- Reuters reported April 27 that China kept widening trade pressure on the United States, using new export, tech and legal controls during a tariff truce. - The clearest detail: Beijing tightened rare-earth licensing, kept leverage over critical minerals, and paired it with a 50% domestic chip-equipment rule. - The moves point to a truce that did not unwind decoupling pressure before a planned Xi-Trump summit. (reuters.com)
China used its tariff truce with the United States to add new trade weapons instead of rolling them back. Reuters reported the shift on April 27, citing measures Beijing has introduced since Xi Jinping and Donald Trump met in Busan in October 2025. (reuters.com) (usnews.com) The most sensitive lever is rare earths, a group of minerals used in electric vehicles, aircraft engines, chips and military systems. Reuters said China tightened its rare-earth licensing regime during the truce rather than eliminating it, despite White House expectations after the Busan deal. (reuters.com) (y94.com) China had already expanded those controls in October 2025 by adding five more rare-earth elements and extending licensing to some foreign-made goods that use Chinese materials or equipment. Reuters reported that exports of 12 rare earths were then restricted, with added scrutiny for semiconductor users and military-linked end uses. (reuters.com) (cset.georgetown.edu) The toolkit now goes beyond minerals. Reuters reported that China told chipmakers on December 30, 2025 to use at least 50% domestically made equipment for new capacity, a rule aimed at replacing foreign tools in semiconductor plants. (reuters.com) (usnews.com) Beijing also issued guidance requiring new state-funded data-center projects to use only domestically made artificial intelligence chips. Reuters reported that projects less than 30% complete were told to remove installed foreign processors or cancel planned purchases. (reuters.com) (ca.news.yahoo.com) In January 2026, Chinese authorities told domestic companies to stop using cybersecurity software from more than a dozen U.S. and Israeli firms, according to Reuters. That order added another non-tariff pressure point in sectors where foreign suppliers had kept a foothold. (reuters.com) (usnews.com) Two April 2026 State Council regulations widened the legal side of the campaign. Reuters said one authorizes action against foreign countries, companies or organizations accused of undermining China’s industrial and supply chains, while another targets what Beijing calls unlawful extraterritorial jurisdiction. (reuters.com) (y94.com) Analysts told Reuters the pattern looks less like tit-for-tat retaliation and more like a permanent menu of coercive tools. Joe Mazur of Trivium China said Beijing was operating on an “if you want peace, prepare for war” logic ahead of a planned Xi-Trump summit in mid-May. (reuters.com) (y94.com) That leaves the November 2026 truce deadline looking less like a reset than a pause with new conditions. China kept the language of stabilization, but the supply-chain controls it built during the ceasefire are still in place. (reuters.com) (usnews.com)
