China Expands Rare Earth Export Controls To Target Semiconductor, Defense Users

Longtime Slashdot reader hackingbear writes: Following U.S. lawmakers' call on Tuesday for broader bans on the export of chipmaking equipment to China, China dramatically expanded its rare earths export controls on Thursday, adding five new elements, dozens of pieces of refining technology, and extra scrutiny for semiconductor users as Beijing tightens control over the sector ahead of talks between Presidents Donald Trump and Xi Jinping. The new rules expands controls Beijing announced in April that caused shortages around the world, before a series of deals with Europe and the U.S. eased the supply crunch.

China produces over 90% of the world's processed rare earths and rare earth magnets. The 17 rare earth elements are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Foreign companies producing some of the rare earths and related magnets on the list will now also need a Chinese export license if the final product contains or is made with Chinese equipment or material, even if the transaction includes no Chinese companies, mimicking rules the U.S. has implemented to restrict other countries' exports of semiconductor-related products to China.

Developing mining and processing capabilities requires a long-term effort, meaning the United States will be on the back foot for the foreseeable future. The Commerce Ministry also added to its 'unreliable entity list' 14 foreign organizations, which are mostly based in the United States, restricting their ability to carry out commercial activities within the world's second-largest economy for carrying out military and technological cooperation with Taiwan, or 'made malicious remarks about China, and assisted foreign governments in suppressing Chinese companies,' it said in a separate statement, referring to TechInsights, a prominent Canadian tech research firm, and nine of its subsidiaries including Strategy Analytics which were among those blacklisted.

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