China’s move to expand rare earth metals (REM) export restrictions has once again impacted global industries. The country added five new elements to its export ban list and tightened monitoring of users in the semiconductor sector, ahead of a critical meeting between President Donald Trump and President Xi Jinping.

Shortly afterward, Trump announced that there was no reason to meet Xi Jinping. He also retaliated against China’s export restrictions by imposing a 100% tariff on Chinese imports to the United States, effective November 1, 2025.

Amid concerns that China’s new REM export rules could disrupt the global supply chain, Taiwan offered a different perspective.

Taiwan’s Ministry of Economic Affairs assured that China’s latest policy would not significantly affect the country’s semiconductor industry.

In an official statement, the ministry explained that the rare earth elements included in China’s new restrictions differ from the materials required for chip production in Taiwan.

"The rare earth elements listed in China’s export ban are not the same as those used in our semiconductor industry. Therefore, at present, there is no significant impact on semiconductor manufacturing in Taiwan," the ministry said, as cited by Reuters on Monday (October 13, 2025).

Taiwan, home to TSMC (Taiwan Semiconductor Manufacturing Company), is known as the hub of the global semiconductor industry. TSMC chips are key components in a wide range of high-tech products, including smartphones and AI systems.

The ministry also emphasized that Taiwan’s domestic demand for rare earth metals is largely supplied by countries such as Europe, the United States, and Japan, not China.

Nonetheless, Taiwan authorities warned that Beijing’s latest move could create a domino effect on the global supply chain for other products, including electric vehicles and drones.

"The impact needs to be closely monitored," the ministry added.

Meanwhile, Beijing defended its new policy on the grounds of national security. The Chinese government stated that the export restrictions on rare earth metals and related equipment were implemented due to concerns about the potential military use of these materials amid rising armed conflicts in various regions.