China defends rare earth export curbs, risks global tech stability

China has defended its latest export control measures on rare earths and related items as a legitimate action to safeguard global peace, warning the US of 'resolute measures' if President Donald Trump proceeds with his threat to impose 100 per cent tariffs on Chinese exports, PTI reported.

China announces new curbs

China on Thursday announced new restrictions on the export of technologies and equipment related to the mining and processing of rare earths, lithium batteries, and rare earth-based superhard materials. The controls also cover overseas transfers of production technologies.

70% global rare earth mining

China accounts for about 70 per cent of global rare earth mining and nearly 90 per cent of their processing. It is the world's dominant supplier of the minerals critical for manufacturing electronics, automobiles, wind energy, and defence equipment. The US, the EU and India are the top importers of China’s rare earth metals.

Impact of China's move

Technology and manufacturing sectors in Taiwan may soon experience major disruptions following China's latest move to tighten control over rare earth exports, warned Kristy Hsu, director of the Taiwan ASEAN Studies Centre at the Chung-Hua Institution for Economic Research, as reported by Focus Taiwan.

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Hsu said that China's sweeping restrictions are not limited to the US but are designed to exert pressure on any nation dependent on Chinese rare earth elements or technology.
According to the report, she cautioned that Taiwan could be hit hard as a large portion of its imported semi-finished goods and electronic components from Japan rely on materials or refining processes originating in China.