China has opened a new front in trade wars by restricting the export of certain rare earth elements. This is expected to affect the supply of high-tech products. While tariff retaliations continue between the U.S. and its trading partners, this situation leads to uncertainty in the course of global trade. Following U.S. President Donald Trump’s announcement of “reciprocity-based” tariffs, China intensifying trade wars by limiting the export of certain rare earth elements in response to the reciprocal tariff increase by the U.S. The Chinese Ministry of Commerce had announced that 7 categories of medium and heavy rare metals including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, yttrium, and their alloys will be included in the export control list starting from April 4th. Within this scope, Chinese suppliers will only be able to export these rare earth elements with government permission. In addition, Chinese customs officials may seize shipments suspected of containing restricted elements. These elements, for which the country provides a significant portion of the global supply, are used in a wide range of products from weapon systems to high-performance motors, nuclear reactors to electronic and optical equipment, space vehicles to medical imaging machines, batteries and fuel cells to semiconductors and superconductors. China, which has a significant share in the production of 17 groups of rare earth elements, has expressed its intention to turn its global dominance in this field into an economic advantage with export restrictions. GLOBAL CHIP SUPPLY MAY BE AT RISK This move by the country came after U.S. President Donald Trump announced that new tariffs of 34% will be imposed on China under reciprocity basis. As China opens a new front in trade wars by restricting the export of certain rare earth elements, questions arise about how this situation could affect the global supply of high-tech products. Metals like samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium are of critical importance in sectors such as defense, electronics, and renewable energy. While rare earth metals are crucial in sectors such as defense, electronics, and renewable energy, they are heavily used in cellphones and electric vehicles. It is anticipated that China’s export restrictions on rare earth elements may pose challenges to the global chip manufacturing supply. Furthermore, China has stated that it will not back down against President Trump’s threat to impose an additional 50% tariff and will take decisive measures to protect its rights and interests.