US Expands China Tech Restrictions; Beijing Tightens Rare Earth Export Controls
Washington has broadened its restrictions on certain Chinese tech companies, now encompassing their subsidiaries. Meanwhile, Beijing has tightened its grip on earth exports, with new rules coming into effect this week.
The US move, which took effect immediately on Thursday, is part of ongoing efforts to curb the influence of specific Chinese tech companies. Meanwhile, China has placed export controls on seven types of earth minerals, a strategic move that began in April. This restriction, targeting primarily European companies, has led to a backlog of license applications. As of September 2025, only 19 out of 141 applications have been approved, with 121 still pending.
The new Chinese regulations, also effective from Thursday, require licenses for exporting technologies used in earth mining, smelting, processing, and magnet manufacturing. They also prohibit Chinese nationals and companies from assisting earth activities abroad without government approval. Export license applications for advanced computing and AI chips with military potential will be reviewed on a case-by-case basis, with the commerce ministry set to reject applications for military use and defense companies in principle. Even foreign firms supplying earths produced in China or processed with Chinese technologies now need licenses.
These moves by Washington and Beijing highlight the escalating tensions in the tech and earth sectors. While the US expands its restrictions, China tightens its control over earth exports, using them as a strategic tool in global trade disputes. The impact of these measures on international supply chains and trade relations remains to be seen.
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