Xi’s Rare Earth ‘Bazooka’ Sparks Global Alarm, Race for Supplies

China’s sweeping new restrictions on rare earth exports jolted governments and set off a race to secure alternative supplies, in a stark demonstration of Beijing’s global clout and growing risks for companies.

The rules announced last week require overseas firms to obtain Chinese government approval before exporting products containing even trace amounts of certain rare earths that originated in China. They prompted threats of punitive measures from Washington even as both sides signal an openness to talks, and pushback from the European Union.