Beijing restricts exports to US rare earth, defence firms

US-China tensions over the use of commercial technology for military purposes have flared anew, with Beijing imposing export controls on 10 American companies, in what analysts view as a calibrated response to Washington’s expansion of a Pentagon blacklist targeting Chinese firms and their subsidiaries. Dylan Loh, who researches Chinese foreign policy at Singapore’s NTU, said the inclusion of MP Materials and USA Rare Earth stands out as they are central to Washington’s efforts to build up a domestic rare earth supply chain and reduce reliance on China for such materials. Hu Xinyue, a senior analyst at RSIS in Singapore, agreed that the new export controls are a calibrated response to push back against US pressure, rather than an escalation. Noting that Nvidia and other major chipmakers were spared, Hu said China this time chose targets that would cause some hurt without touching the most sensitive nerves in the US-China relationship.

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