Beijing, a dominant supplier, has retaliated against potential restrictions with export controls. While China attributes its competitiveness to its vast market and industrial chains, escalating trade tensions coincide with growing economic stress domestically, despite some temporary buffers.

China banned rare earth exports to three US firms, warning of supply chain fragmentation as trade tensions over critical minerals escalate globally.

Beijing, a dominant supplier, has retaliated against potential restrictions with export controls. While China attributes its competitiveness to its vast market and industrial…