In a bold geopolitical move, China has imposed stringent controls on the export of rare earth elements (REEs), vital for the production of semiconductors and microchips. This maneuver underscores China's dominance over the global REE market, with the country producing 68.6% of the world's supply in 2023.

Critically, Beijing's decision to enforce these export licenses aims to disrupt the U.S. semiconductor supply chain, according to Dean W. Ball of the Foundation for American Innovation. If enforced rigorously, the policy could significantly impact the U.S. technology industry, potentially triggering an economic setback.

President Donald Trump has promised retaliation, viewing China's latest controls as hostile. Meanwhile, China has poised itself for countermeasures should the U.S. escala

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