Da-Nien Liu, Director of The Regional Development Study Center at the Chung-Hua Institution for Economic Research (CIER), notes that China’s latest rare earth export controls have evolved beyond traditional export restrictions into a comprehensive cross-border regulatory mechanism. All products containing Chinese rare earths or utilizing Chinese technology are now under enhanced oversight. There is increased scrutiny of “end-use” and “end-user” applications, especially focusing on the semiconductor, AI, and military sectors. The move demonstrates that China is establishing a strategic governance system centered on “national security” that encompasses mineral resources, technology, and application layers.
Institutional Response to Containment: U.S.-China Competition Enters New Regulatory Phase
Director Da-Nien Liu observes that China controls approximately 70% of global rare earth supply, and the extension of its regulatory reach beyond its borders represents an institutional response to U.S. technological containment measures. The U.S.-China relationship has progressed from a “trade war” to a “regulatory war,” with the competitive focus shifting toward dominance over institutional frameworks and normative standards.
The United States criticizes China for wielding rare earths as a geopolitical tool, while China emphasizes its imperative to safeguard national security. This trend reflects the accelerating politicization of global resource governance, with companies facing heightened compliance and traceability requirements. Beyond promoting material diversification and autonomous supply chains, Taiwan must also strengthen its institutional preparedness early to maintain industrial resilience and international competitiveness.
Author: CIER Editorial Team
Date: October 28, 2025