China’s rare earth weapon changes contours of trade war battlefield

-China's expanding sanctions regime modelled on the US -Export licence system key for global supply chain surveillance -Impossible to know what share of requests get approved

- REUTERS

China has signalled for more than 15 years that it was looking to weaponise areas of the global supply chain, a strategy modelled on longstanding American export controls Beijing views as aimed at stalling its rise.

The scramble in recent weeks to secure export licences for rare earths, capped by Thursday's telephone call between US and Chinese leaders Donald Trump and Xi Jinping, shows China has devised a better, more precisely targeted weapon for trade war.

Industry executives and analysts say while China is showing signs of approving more exports of the key elements, it will not dismantle its new system.