From cars and computer chips to tanks and fighter jets, China?s new
export restrictions represent a sweeping effort to control global
commerce and have set off a renewed trade fight that pits Beijing
against not only the United States but also Europe.
The new regulations, which take effect in stages on Nov. 8 and Dec. 1,
apply to the entire world, sharply escalating China?s sway over critical manufacturing at a time of increased international fractures over trade.
The restrictions led President Trump on Friday to threaten to impose new
100 percent tariffs on Chinese imports starting Nov. 1.
The rules go far beyond China?s limits since April on the export of rare earth metals, which are mined and processed mainly in China, as well as magnets made from those metals. In a series of announcements on
Thursday, China extended its restrictions to worldwide shipments of
electric motors, computer chips and other devices that have become
central to modern life and are now manufactured mainly in China.
The regulations prohibit exports from China to any country of materials
or components for use in military equipment.
These rules have drawn particular concern in the West because of their potential to debilitate Europe?s efforts to supply arms to Ukraine and
to rebuild Europe?s own militaries to counter Russian aggression.
The raft of regulations means that companies not involved in arms manufacturing must obtain export licenses from China?s Ministry of
Commerce to move products with Chinese content across any national
borders around the world. The rules broaden the use of elaborate
procedures requiring exporters to submit technical drawings of every
product their customers want to manufacture with Chinese rare earths and describe how these products will move through global supply chains.
After arms manufacturers, the global auto industry appears to be the second-most vulnerable sector, rare-earth industry specialists said. The thousands of companies that produce parts were already the hardest hit
by China?s requirement in April that many kinds of rare earth magnets
cannot leave the country without licenses.
A single gasoline-powered car can have more than 40 different rare earth magnets inside electric motors that power the brakes, seats, steering,
power windows and other systems.
American and European auto parts producers have encountered months of
delays in obtaining these export licenses. China has started to issue licenses but the process has been slow and cumbersome, industry
officials say.
China has modeled its rare earth regulations on American rules for trade
in a few of the world?s most powerful computer chips. But rare earths
are more widely used.
The rules encompass almost any product in which rare earths make up 0.1 percent or more of the value. That means they cover not just magnets but also electric motors and even much bigger systems that have electric
motors with rare earth magnets inside.
The costliest components of car seats, for example, are the motors that adjust them. And the most expensive pieces in these motors are the rare earth magnets.
The new rules apply to any shipments across national borders, not just
in or out of China. European automakers, in particular, face a daunting
task of seeking Chinese export licenses to move car parts within Europe.
Many companies have recently tried to limit their dependence on China by buying rare earths and rare earth magnets from the few producers outside China. But Beijing?s latest regulations assert jurisdiction over much of this production as well.
The rules also say that any rare earth-related products made outside of China but using Chinese technology are also covered by China?s export control rules.
Rare earth refineries and magnet factories all over the world have been buying Chinese equipment for the past 20 years. Many equipment vendors
in North America and Europe closed when most of the world?s rare earth mining shifted to China in the late 1990s.
https://www.nytimes.com/2025/10/12/business/china-rare-earth-export- controls.html
My God, the Chinese are quick learners.
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