China leverages rare earths, solar, drones, pharma to counter Western decoupling

China is expanding export controls and industrial policy beyond rare earths to include solar panels, drones, and pharmaceutical ingredients, signaling a strategic shift to weaponize its manufacturing dominance. The move complicates Western efforts to reduce supply-chain dependence and raises the risk of retaliatory trade measures. The full scope and timing of restrictions remain uncertain, but the trend is clear.

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