Editing New Export Controls on Rare Earths and Semiconductors (section)

== Challenges & Risks for China ==

* Overuse of control tools may '''backfire''': pushing other nations to accelerate supply chain independence too quickly.
* Export restrictions may hurt China’s own downstream manufacturing if shortages or licensing bottlenecks occur.
* The legal framework is becoming more formalized and rigid — reducing policy flexibility and making reversals politically costly.  (Source: The Diplomat)
* China’s dominance in refining (rather than just mining) is its strength — but refining is resource-intensive and polluting, making it harder for competitors to catch up.

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