China Tightens Rare Earth Levers on Trump in Leverage Show

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In a clear move to squeeze bullying space of Trump, Beijing expanded restrictions on rare earth minerals and technologies.

By TRH Foreign Affairs Desk

October 10, 2025 — Beijing just made it clear that it holds the magnet — and it’s willing to pull the world’s industries in whichever direction it chooses. That a dragon can tame a bull was also the message of Beijing as measures came ahead of the likely meeting between Xi Jinping and Donald Trump.

In a sweeping move that underscores the fusion of economic power and national security, China announced tighter export controls on rare earths and related technologies, while barring its citizens from participating in unauthorized overseas mining. The new rules, unveiled Thursday by the Ministry of Commerce, strike at the heart of the global supply chain — from electric vehicles and semiconductors to advanced weapons systems.

According to CNBC, foreign companies must now obtain a license from Beijing to export any products containing more than 0.1% domestically-sourced rare earths, or those manufactured using Chinese extraction, refining, magnet-making, or recycling technology.

Applications tied to foreign militaries, entities on export-control lists, or technologies that could support “terrorism or weaponry” will be denied outright. For exports linked to sub-14 nanometer semiconductors, AI, or memory chips, approvals will be decided case by case.

Beijing Tightens Its Grip

“This marks a major upgrade in rare earth export control,” Dan Wang, China director at Eurasia Group, told the outlet, noting that the move expands restrictions from raw materials to intellectual property and processing know-how.

The Ministry justified the measures as necessary to prevent the “misuse” of rare earths in sensitive sectors, but few doubt the deeper motive. Rare earth elements — 17 obscure metals with outsized importance in modern technology — have long been a geopolitical lever for Beijing.

China’s latest step builds on earlier controls announced in April 2025, and it’s no coincidence the new announcement comes just weeks before the expected Trump-Xi summit in South Korea, following a tense phone call between the two leaders.

Economic Coercion as Statecraft

“This directive is a clear attempt to undermine the industrial base development efforts of the United States and its allies,” Gracelin Baskaran, director of the Critical Minerals Security Program at CSIS, told CNBC. Incidentally, Chinese measures came close on the heels of Pakistan claiming to have exported its first batch of rare earth metals to the US.

Wendy Cutler, former U.S. trade negotiator and now at the Asia Society Policy Institute, told the business outlet: “Beijing has realized it has leverage in this sector — and it’s clearly not shy about using it.”

For Washington, this development lands amid an already fraught trade environment. Trump has hinted at tariff relief talks as part of a broader recalibration of US-China relations, but China’s new controls effectively flip the script — pushing Trump back into a reactive posture.

Strategic Message Wrapped in Metal

Beyond the bureaucratic language of “export licensing” lies a blunt message from Beijing: control the inputs, and you control the outcomes.

China already refines more than 85% of the world’s rare earths and dominates magnet-making technologies used in electric vehicles, wind turbines, and missile guidance systems. With the new restrictions, it’s not just the minerals that are being weaponized — it’s the technological expertise itself.

A Taste of His Own Medicine

Indian strategic expert Shashi Asthana summed up the geopolitical mood on LinkedIn: “The Chinese are giving President Trump a taste of his own medicine. He nurtured the idea of playing hardball through coercive actions before any negotiation. China is doing the same to him.”

Asthana recalled that when Trump raised tariffs on China up to 245%, Xi Jinping retaliated with curbs on rare earth magnets — a playbook now being updated and expanded. “It will be interesting to see how the talks go through,” he added.

For global manufacturers, the implications are immediate and severe. The world’s dependence on China’s critical minerals ecosystem — from mining to refining to manufacturing — means even marginal export restrictions can ripple across supply chains.

With these moves, Beijing is declaring that rare earths are no longer just commodities — they’re strategic assets. In doing so, China is rewriting the global rules of technological engagement just as Trump prepares to face Xi in person.

What began as a trade dispute has now evolved into a contest of control — over minerals, manufacturing, and the meaning of sovereignty itself.