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China’s Rare Earth Restrictions Aim to Beat U.S. at Its Own Game

Beijing’s latest effort to weaponize global supply chains is modeled on the American technology controls that it has long criticized.

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Xi Jinping walks to his seat with a row of national flags behind him.
President Trump has threatened to cancel a meeting with China’s top leader, Xi Jinping, who spoke at the Global Leaders’ Meeting on Women in Beijing on Monday.Credit...Pool photo by Ken Ishii

Over the past three years, Washington has claimed broad power to impose global rules that bar companies anywhere in the world from sending cutting-edge computer chips or the tools needed to make them to China. American officials have argued that approach is necessary to make sure China does not gain the upper hand in the race for advanced artificial intelligence.

But a sweeping set of restrictions announced by Beijing last week showed that two can play that game.

The Chinese government flexed its own influence over worldwide supply chains when it announced new rules clamping down on the flow of critical minerals that are used in everything from computer chips to cars to missiles. The rules, which are set to take effect later this year, shocked foreign governments and businesses, which may now need to acquire licenses from Beijing to trade their products even outside China.

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Ana Swanson covers trade and international economics for The Times and is based in Washington. She has been a journalist for more than a decade.

Meaghan Tobin covers business and tech stories in Asia with a focus on China and is based in Taipei.

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