Beijing Raises the Stakes: Export Controls and Trade Tensions

Beijing tightens its grip on high-tech supply chains with new export controls as U.S. and China prepare for expected talks. Amid ongoing tariff pauses, these measures particularly affect semiconductors and critical minerals, intensifying trade tensions. Meanwhile, the U.S. seeks China's cooperation on fentanyl flow and balanced trade.

Beijing has strategically enhanced its bargaining position prior to anticipated U.S.-China discussions, announcing new export controls aimed at high-tech manufacturing supply chains ahead of talks involving Presidents Donald Trump and Xi Jinping in South Korea.

These measures, occurring during a scheduled 90-day tariff pause, signal heightened trade tensions with a focus on critical minerals and semiconductors. Both global powers struggle to surpass current truce stipulations.

Besides trade measures, U.S. demands for China's assistance in curbing fentanyl precursors entering America remain unmet, maintaining bilateral strains even as both sides look for common economic ground.

(With inputs from agencies.)