🧪 In response to tariffs imposed by U.S. President Donald Trump, China is tightening export controls over seven types of rare earth elements. This was reported by Bloomberg.
Source: PRYAMYY
📉 This move could affect global supplies of materials that are critical for the production of electric vehicles, high-tech equipment, and weapons. The list includes samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. The most common elements — neodymium and praseodymium — remain outside the restrictions for now.
🇨🇳 According to the U.S. Geological Survey, China accounts for nearly 70% of the world’s rare earth element production. Beijing’s control over this market has long been considered a potential geopolitical weapon, given the U.S. dependency on Chinese exports.
🔒 The latest restrictions mean that all exports will now undergo enhanced scrutiny. Analysts from Citic Securities Ltd explain this as a defense of China’s national security and a way to boost the attractiveness of investments in its domestic industry.
💼 At the same time, Trump announced new 25% tariffs on all goods from the European Union and stated that the trade measures would apply to all countries, not just those with a negative trade balance with the U.S.
🛃 In response, China had previously imposed similar tariffs on American imports, signaling a further escalation of the trade war.