Rare-Earth Rumble: China's Export Control Quandary

Amid heightened tensions between the U.S. and China, China's rare-earth export controls have left many exporters questioning their need for licenses. As compliance queries soar and the enforcement apparatus grows, the upcoming summit between President Trump and Xi Jinping could determine the fate of their fragile trade truce.

As China tightens its grip on rare-earth exports, manufacturers and exporters face growing uncertainty. Once-simple products like magnets and medical equipment are now falling into a gray area, causing confusion over export licenses.

A significant rise in compliance queries to China's commerce ministry reflects the mounting concerns among companies that deal in products ranging from motor components to optical glass. Since tightening rare-earth controls last year, China has multiplied enforcement measures, even as domestic businesses grapple with increased costs and hurdles in shipping goods.

The upcoming March summit between Trump and Jinping in Beijing may further highlight the strategic power plays and potential resolutions to this escalating economic conflict between the world's largest economies.

(With inputs from agencies.)