China's move to control rare earth trade

China's recent decision to tighten control of rare earth metals marks a significant turning point in global technology and trade. The Ministry of Commerce has introduced new export control measures that restrict the export and transfer of technologies related to rare earth extraction, refining and magnetic material production without prior government approval. These measures also require special authorisation for assembly, repair and modernisation of rare earth production lines.

Analysts view this move as a strategic response to the ongoing trade and tariff disputes with the United States. By imposing strict licensing and authorisation requirements, China aims to safeguard its strategic mineral resources and reinforce its dominance over the global supply chain.

However, experts caution that such restrictions may lead to major disruptions in global technology markets. Rare earth metals are essential components in high-tech industries such as electric vehicles, semiconductors, wind turbines and defence systems. As China currently controls nearly 70 per cent of global rare earth production and about 90 per cent of processing, the West's heavy dependence on Chinese supply poses a considerable strategic vulnerability.

This development may push technologically advanced nations, including the United States, Japan and members of the European Union to accelerate efforts to diversify their supply chains, explore new mining opportunities and invest in recycling technologies. China's policy shift has therefore not only deepened global economic tensions but also underscored the urgent need for alternative sources of these critical materials.

Sherazur Rahman

Singra, Natore, Bangladesh

sherazbd@gmail.com