China Expands Rare Earth Export Controls Ahead of Trump-Xi Meeting

China escalated its rare earth export controls on Thursday, introducing sweeping restrictions that could disrupt global supply chains and impact market sentiment across traditional and crypto sectors. The Ministry of Commerce announced new rules requiring foreign companies to obtain dual-use licenses for products containing Chinese-origin rare earth elements, effective December 1.

Rare earths are critical components in semiconductors, AI systems, and defense technologies—sectors where China dominates global production. The MOVE grants Beijing unprecedented leverage over international supply chains, with licenses likely to be denied for military or AI-related applications. "China just weaponized rare earths—again, but this time globally," noted geopolitical strategist Velina Tchakarova.

Market analysts warn of potential risk-off spillover into crypto if AI stocks face pressure. Investors may seek hedges in decentralized assets as supply chain uncertainties grow.