China's Ministry of Commerce has implemented new, sweeping restrictions on rare earth exports, escalating trade tensions with the US and granting Beijing significant leverage. This move tightens China's near-monopoly on these critical minerals essential for various technologies, prompting strong reactions from Washington.

• Foreign companies now require Chinese government approval for exporting products containing rare earths and must declare their intended use.
• US President Donald Trump threatened to impose an additional 100% tariff on Chinese goods, while US Treasury Secretary Scott Bessent called it "China versus the world."
• Rare earth minerals are crucial for products ranging from smartphones to fighter jets, with an F-35 fighter jet requiring over 400kg for its components.
• China's rare earth exports account for approximately 70% of the global supply for magnets used in electric vehicle motors.
• Experts believe these restrictions give China the upper hand in upcoming trade negotiations between President Trump and China's President Xi Jinping, despite rare earths making up less than 0.1% of China's annual GDP.