China has significantly expanded its use of export controls over the past five years, signaling a broader shift in how trade policy is being used as a geopolitical tool.
According to a report cited by the Financial Times, China announced export restrictions 30 times between 2021 and 2025, compared with 11 instances in the previous five years. The increase reflects Beijing's growing willingness to leverage its position in critical supply chains, particularly as trade tensions with the US continue to intensify.
The most significant recent measures focus on strategic sectors and industrial security. China has introduced new regulations allowing authorities to penalize foreign companies that conduct supply chain due diligence on Chinese suppliers if it is deemed harmful to national industrial interests. The rules also create the possibility of exit bans for individuals accused of violating the regulations.
These controls build on earlier measures targeting exports of critical minerals and rare earth materials – sectors where China maintains dominant global market share. The approach represents a shift away from informal pressure tactics toward more formalized legal and regulatory tools.
Export controls are becoming part of trade strategy
What makes the recent measures notable is that they are no longer limited to narrow security concerns. Instead, export controls are increasingly being used as part of broader economic statecraft.
The Financial Times noted that since 2020, China has increasingly adopted 'geoeconomic' controls designed to achieve geopolitical objectives. In practice, this means trade restrictions are being used not just to protect domestic industries, but also to respond to foreign pressure and strengthen China's negotiating position.
This is particularly visible in the US-China relationship. Beijing has expanded controls partly in response to US restrictions on semiconductors and advanced technologies. Over time, this has created a more reciprocal dynamic, where both sides are increasingly willing to weaponize access to critical inputs.
The result is a trade environment where supply chains themselves are becoming strategic leverage points.
The impact extends beyond China and the US
Although the measures are closely tied to US-China tensions, the effects are global.
Many industries, including electronics, automotive manufacturing and clean energy, remain heavily dependent on Chinese materials and processing capacity. This creates a structural challenge for international firms. Even companies outside the US-China trade dispute face greater uncertainty around sourcing, compliance and long-term supply stability.
For multinational businesses, export controls can interrupt access to components entirely, making supply chain resilience more important than cost efficiency alone.
Businesses are facing a more fragmented trade system
One of the clearest implications of China's expanding controls is the growing fragmentation of global trade.
Jens Eskelund, president of the EU Chamber of Commerce in China, warned there is a risk of a global "race to the bottom" as countries increasingly adopt retaliatory trade restrictions.
This marks a shift away from the assumption that trade flows will remain politically neutral. Instead, access to technology, minerals and industrial inputs is becoming more conditional and more closely tied to geopolitical relationships.
For traders and manufacturers, this increases the importance of diversification. Firms are likely to continue reducing dependence on single-country sourcing models and investing in alternative supply chains, particularly in sectors linked to advanced technology and critical minerals.
In that sense, China's export controls are not just affecting current trade flows, they are accelerating a broader restructuring of global trade.