Trade Disputes Lead to New Export Limits

(MENAFN) As tensions surrounding global commerce escalate, export restrictions are emerging as a significant mechanism in the arena of international competition.

These regulations now play a vital role in restricting the transfer of essential technologies, materials, and specialized services across nations.

The objective is to protect domestic sectors and wield influence in geopolitical negotiations.

Nations are increasingly enacting limitations on the export of sensitive products, including semiconductors, components related to artificial intelligence (AI), quantum computing technologies, and materials with military applications.

Although these measures have traditionally been justified on the grounds of national defense, they are now being utilized as deliberate tactics in ongoing disputes over technology and trade supremacy.

"Export controls have been used as offensive weapons intended to degrade strategic competitors’ abilities to advance military modernization for the last several years,” Emily Benson, who leads strategic planning at US-based Minerva Technology Futures, told a news agency.

“What is new currently is the direct attachment of export controls to trade negotiations,” she added.

A recent development illustrating this trend occurred when US President Donald Trump unveiled extensive retaliatory tariffs on April 2 aimed at China.

In retaliation, Beijing halted the shipment of rare earth elements and associated magnetic products — a decision that led to significant supply disruptions in the European automotive sector, particularly impacting companies such as BMW and Mercedes-Benz.

China dominates about 70% of the world's rare earth output and is responsible for refining 90% of these materials globally, even though just 34% of known reserves lie within its own territory.

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