China Clamps Down on Rare Earths as Trump and Xi Gear Up for High-Stakes Chat

Beijing rolled out fresh rules to lock down its rare earth exports even more. This comes right before Presidents Donald Trump and Xi Jinping are set to huddle at the Asia-Pacific Economic Cooperation summit in Busan, South Korea, later this month. Folks, these minerals aren't just rocks, they power everything from your smartphone to electric cars.

So, what's the big deal with these new curbs? China already supplies about 80% of the world's rare earths, those 17 rare elements buried in the earth that make high-tech gadgets tick.

The latest move slaps export licenses on not just the raw stuff, but also tech for mining, smelting, and even building production lines abroad. Exporters now need a green light from China's commerce ministry for things like magnet-making gear or recycling tools. It's like Beijing saying, "If you want to play in our sandbox, you ask permission first."

This hits hard at defense firms and chip makers, who rely on these materials for missiles, jets, and next-gen computers. Why now? Trade talks between the US and China have been dragging on for months, with tariffs scattering everywhere. Trump has strongly advocated for tariffs to encourage job returns, but China holds a hidden advantage.

Analysts figure these rules are a nudge or maybe a shove heading into Busan. They could snag efforts by companies in places like Texas or Australia to build their own supply chains. Do you recall how supply disruptions last year caused EV battery prices to soar? Yeah, that could happen again, slowing down the green energy push we all need.

Watching this unfold feels a bit like a family argument nobody wins if it escalates. But here's hoping Trump and Xi find common ground in Busan. A smoother flow of these minerals could spark real progress in tech and jobs, for everyone.

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