World
China and US Trade Export Controls as Leverage
Will Beijing use rare earths and drone rules to squeeze Washington?
Will Beijing use rare earths and drone rules to squeeze Washington?
have become a central tool in the China-US rivalry because both sides are using access to key technologies and materials to press for advantage without moving to outright confrontation. Washington’s chip restrictions and Beijing’s tightening on , batteries and related technologies show a aimed at signaling strength, shaping and extracting concessions before top-level talks.
During the truce period, both sides kept using and industrial rules as pressure points, while China expanded its toolkit into batteries, , and other strategic materials. Reuters reported in April 2026 that Beijing was also exploring restrictions on advanced technologies tied to solar manufacturing equipment, underscoring that the rivalry was spreading across chip, AI, battery, and . The pattern confirmed that export controls had become a , not a one-off retaliation cycle.
Xi and Trump met in Busan and signed an agreement aimed at reducing trade tensions. The deal temporarily suspended some recent escalations, including US implementation of the and China’s October rare earth controls, while also easing some tariffs. The agreement showed that had become explicit bargaining instruments in .
Ahead of Xi Jinping and Donald Trump’s planned meeting, China sharply broadened export controls on , related technologies, and . Reuters reported that the move was timed before the leaders’ talks, reinforcing the message that Beijing would use as leverage in . The controls mattered because rare earths, refining technology, and compliance rules affect semiconductors, AI hardware, drones, and many downstream manufacturers.
After Geneva talks, the two sides agreed to temporarily cut and reopen negotiations. China later said it would review export applications for , while the US was expected to lift some restrictive measures, showing were being traded inside a broader deal rather than treated as isolated penalties. The truce eased immediate pressure but left the underlying dispute unresolved.
China followed with a and additional export-control measures, deepening the standoff instead of containing it. The measures were aimed at signaling resolve while raising pressure on US manufacturers and importers that depend on Chinese . Reuters and other timelines describe this as part of a larger April escalation in which export controls became central .
China imposed export restrictions on seven types of and added other retaliatory measures after new US tariff actions. It also moved to place US companies on its and , showing that Beijing was now using the same blacklist-and-license playbook Washington had used against Chinese tech firms. The rare earth move was especially important because it threatened industrial supply chains well beyond the chip sector.
Early in 2025, the trade conflict escalated again with new US on Chinese imports and Chinese retaliation targeting US exports and firms. The dispute quickly moved beyond into export controls and other , including tighter rules on . This restart set the stage for a broader bargaining cycle built around leverage and counterleverage.
China began using export controls on such as , , graphite, and antimony in response to US pressure. These materials matter for semiconductors, electronics, defense systems, and clean-energy supply chains, so the move showed Beijing was willing to use of its own. The controls also signaled that the trade fight was expanding beyond tariffs into industrial inputs.
In October 2022, the imposed unprecedented new limits on to China, targeting advanced chips and the equipment needed to make them. The restrictions were later expanded in 2023 and 2024, showing that export controls had become a sustained rather than a one-time sanction. Beijing treated these measures as a direct effort to slow its AI and ambitions.
The United States started tightening on advanced to limit China’s access to key chips and related tools. This became an early template for using trade policy as a weapon in the rivalry. The controls also tied chips, , and broader industrial competitiveness together in a single policy fight.