Beijing is tightening its grip on cutting-edge technology, implementing new export controls. The move comes as trade tensions escalate with the US and Europe. Among the affected companies is Foxconn, Apple’s primary manufacturing partner. Chinese officials have reportedly obstructed the transfer of technical staff and machinery to India, hampering Apple’s efforts to diversify its supply chain. China’s dominance in lithium battery production is also being reinforced through newExport controls on lithium extraction technologies. Beyond batteries, China has expanded controls on rare earth elements, tungsten, and tellurium. In December 2023, Beijing extended restrictions to refining and processing technologies, tightening control over the supply chain for materials critical to electric vehicles, wind turbines, and electronics. With China producing 95% of the world’s permanent magnets, its new export restrictions threaten global industrial diversification efforts, according to industry analysts. The road ahead as Beijing asserts control over strategic materials, global manufacturers must navigate a rapidly shifting trade landscape, the Financial Times concludes.
