Keith Bradsher

So no more using any Chinese patents without permission.

No more buying equipment from China to do any of this.

And China makes almost all the equipment for mining and refining rare earths or making magnets.

Second, the new rules put restrictions on what you are allowed to move across any country's borders if it has Chinese magnets and rare earths inside it.

And third, China is saying for the first time that it's going to restrict even more kinds of rare earths than it did the first time around last April.

And so this will affect even more military production, for example, making it hard for Europe to build weapons systems for Ukraine or for Europe to protect itself against Russia.

And that's why Treasury Secretary Scott Besant said that these new rules are a bazooka aimed at the entire world's supply chains.

The United States has done this with the fastest semiconductors.

So about the top three to five percent of the world's semiconductors do have these very restrictive rules from the United States that do track what downstream products they are later built into.

What is new and different about China's rules is that China is putting the restrictions on a raw material.

And then saying that products that are later manufactured from that raw material are also restricted.

So in a way, this is a combination of the U.S.

rules on semiconductors combined with...

The Arab oil embargo in 1973 against the United States and its allies, which was aimed at halting American support for Israel at the time.

So it is both a high-tech restriction and, in China's case, it is now also a raw material restriction, both at the same time.

I really do.

This is China trying to make sure that it

controls global commerce and can turn on and off the taps, not just for goods leaving China, but for goods moving across Europe, across North America, across South Asia, you name it.

This is seeking a new global level of comprehensive control out of Beijing by the Ministry of Commerce.

China has concluded that it benefits from taking very strong stands towards Trump and also towards Europe.