China tightens rare earth export controls on foreign products using Chinese materials

In 2025, China tightened controls on rare earth elements, first in April and then in October, extending licensing requirements to foreign-made products containing at least 0.1% Chinese-origin rare earths. These measures, seen as retaliation to US tariffs, have heightened concerns that South-east Asian countries might be forced to choose between the US and China. However, the region has its own leverage as a supplier of rare earth inputs and can use the competition to diversify partnerships and advance in the value chain. The G20 meeting in September 2025 ended without a joint statement, reflecting disagreements over these issues.