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China Flexes Trade Power with Soaring Use of Export Controls | FT #shorts

The Financial Times short outlines how Beijing has dramatically expanded its use of export controls, tripling formal measures over the past five years. This shift marks a move from informal economic coercion to a structured toolbox of geoeconomic levers aimed at bolstering China’s geopolitical influence. Since President Xi’s 2020 pandemic‑era speech urging the creation of foreign dependencies on Chinese supply chains, Beijing has codified sanctions that target high‑technology components, rare‑earth minerals, and even foreign firms conducting supply‑chain due diligence. The strategy mirrors U.S. restrictions on semiconductor sales, but China’s recent rare‑earth threats forced a stalemate in the Trump‑era trade war and were later wielded against Japan amid tensions over Taiwan. Notable examples include the explicit threat to cut rare‑earth exports to the United States, a move that would disrupt a wide range of manufacturing sectors, and new regulations that can bar individuals under investigation from leaving China. The measures also penalize foreign companies that probe Chinese supply chains, signaling a hardening stance on transparency. The escalation occurs despite a nominal year‑long U.S.–China trade truce, suggesting that export controls will become a permanent feature of bilateral competition. Companies reliant on Chinese inputs must reassess risk exposure, while policymakers in Washington and elsewhere will need to factor these tools into broader strategic calculations.