China – the New Hegemon in Technology and International Trade – not so benign after all

China exerts significant dominance over the global supply chain of rare earth elements (REEs), spanning reserves, mining, processing, and manufacturing. This control stems from state-supported investments, low-cost production, and export policies, making it indispensable for technologies like electric vehicles, wind turbines, semiconductors, and defense systems. On April 4, 2025, China imposed export license requirements on seven medium and heavy REEs and their derivatives (e.g., metals, oxides, alloys, compounds, targets, and permanent magnets) via Ministry of Commerce (MOFCOM) Announcement No. 18. These controls aim to protect national security and comply with non-proliferation rules but are not outright bans (Jackson, L., Lv, A., Onstad, E., & Scheyder, E2025). On October 9, 2025, MOFCOM Announcement No. 57 expanded controls to five additional REEs (effective November 8, 2025) and immediately restricted rare earth mining and extraction technologies. This would have covered 12 of the 17 total REEs (MOFCOM, 2025). On November 1, 2025, Beijing confirmed the one-year suspension of the October measures following a US-China summit, thereby preventing their enforcement after November 8. The EU has welcomed this as a means of stabilizing supply chains for AI and green technology (Xinhua, 2025).