China Announces New Export Curbs Ahead of Xi-Trump Meeting, Links Trade to Key Issues
Beijing has unexpectedly announced export controls on certain artificial diamonds and graphite anode materials – both areas where China holds a dominant production position – effective November 8th. these materials are crucial for the production of semiconductors, quantum devices, and advanced electronic systems. The declaration comes with just one day remaining on a current trade truce between the U.S. and China, and ahead of a planned meeting between president Xi Jinping and President Donald Trump on the sidelines of the Asia-Pacific Economic cooperation summit.
China, the world’s largest producer of rare earth minerals, has been increasing its control over these critical resources, used in a wide range of products including lithium-ion batteries, semiconductors, aircraft engines, LED TVs, and camera lenses. previous controls implemented in April led to global shortages,wich were partially alleviated by subsequent agreements with Europe and the U.S.
Semiconductor Restrictions & U.S. Concerns:
The tightening of control over critical minerals is partially attributed to U.S. efforts to restrict China’s access to advanced semiconductors. U.S. lawmakers express concern that unrestricted access would allow China to rapidly reverse-engineer or independently develop advanced semiconductor technologies, potentially leading to industry dominance and a military advantage. China has consistently urged the Trump administration to remove these restrictions, claiming they are an attempt to stifle legitimate economic growth.
Taiwan & Language Demands:
Reports indicate Beijing is also seeking concessions regarding U.S. policy on taiwan. China wants the U.S. to state it “opposes Taiwan independence,” a shift from the current U.S. position of “not supporting” the independence of Taiwan, which china considers part of its territory.
Trade Imbalances & Investment Restrictions:
Beijing is also demanding the removal of additional tariffs imposed by the U.S. and the easing of restrictions on Chinese firms investing in the U.S. These investment restrictions stem from concerns regarding technology transfer, cybersecurity, and potential military applications, particularly in sectors like AI, aerospace, biotech, semiconductors, and telecommunications. Conversely, the U.S. is seeking commitments from China to purchase more Boeing aircraft and has noted the lack of U.S. soybean cargoes booked by China, the world’s largest soybean buyer.
Fentanyl Crisis & Chemical Controls:
Despite President trump’s 20% fentanyl tariffs implemented in early 2025 to pressure China to curb the flow of precursor chemicals fueling the U.S.opioid crisis, Beijing has not yet announced notable public measures to address the issue. Though, China did announce in June the addition of two precursor chemicals to its list of controlled substances and reported the arrest or prosecution of approximately 2,000 individuals involved in drug-related money laundering.
