China has recently introduced new export regulations for certain rare earth elements classified as dual-use goods—materials that can serve both civilian and military purposes (we reported). While the rules do not target specific countries by name, several U.S. companies have been added to a Chinese list of foreign entities barred from access to dual-use products. According to Reuters, these include defense contractors and firms allegedly maintaining close ties to Taiwan.
In what appears to be a tightening of enforcement, Beijing is now refining its export controls, potentially making it more difficult to reroute shipments through third countries. A similar move occurred in December 2024, when China took steps to restrict exports of gallium and germanium (we reported).
According to The Korea Economic Daily, several South Korean industrial firms have received a notice from China’s Ministry of Commerce, urging them to cease exports of rare earth-based products to U.S. defense companies. The letter reportedly warns of possible sanctions for noncompliance, though the nature of these penalties remains unclear. The development has sparked concern in South Korea about being drawn deeper into the escalating geopolitical and trade tensions between the United States and China.
Photo: iStock/xiao zhou
