China tightens control over key technologies amid rising trade tensions

China has recently made it more difficult for engineers and equipment to leave the country, while proposing new curbs on battery technology exports

Beijing is tightening its grip on cutting-edge technology, implementing new export controls to prevent critical knowledge and materials from leaving the country. The move comes as trade tensions escalate with the US and Europe, according to the Financial Times.

Export restrictions and trade tensions

China has recently made it more difficult for engineers and equipment to leave the country, while proposing new curbs on battery technology exports and restrictions on processing critical minerals. These measures mirror Western tech restrictions that Beijing has previously criticized.

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.

Targeting India while maintaining other trade flows

While exports to Southeast Asia and the Middle East remain largely unaffected, China’s restrictions appear to target India, a key geopolitical rival. Reports indicate that Chinese suppliers have been discouraged from expanding operations in India, with delays in customs clearance used as a trade weapon.

Battery supply chain under scrutiny

China’s dominance in lithium battery production is also being reinforced through new export controls on lithium extraction technologies. Companies like CATL, a global battery leader, may need special licenses to use Chinese technology abroad, impacting projects from Europe to South America.

Industry experts warn that new rules could limit access to China’s cutting-edge battery advancements, forcing international battery makers to rely on outdated Chinese technology. South Korean battery producers, which have started partnering with Chinese firms, now fear disruptions to their supply chains.

Strategic mineral restrictions broadened

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. China’s export restrictions signal a deliberate effort to remain central

to global supply chains, forcing companies to reconsider how and where they source critical materials and technologies, the Financial Times concludes.