Taipei: In a firm response to growing concerns over China’s tightened export controls, Taiwan’s Ministry of Economic Affairs clarified on Sunday that the island nation does not rely heavily on China for its rare earth supplies. The ministry emphasized that Taiwan has successfully diversified its sourcing network, importing most of its essential materials from allied economies such as Japan, the United States, and Europe.
The clarification follows Beijing’s recent decision to expand restrictions on rare earth exports a move that has reignited global discussions about the vulnerability of high-tech industries dependent on these critical minerals. China, which dominates the global rare earth supply chain, added five more materials to its list of controlled exports, citing national security concerns and strategic industrial interests.
While Taiwan’s officials downplayed immediate risks, they acknowledged that the long-term implications for the semiconductor industry the backbone of the island’s economy remain under evaluation. The ministry noted that rare earths play a key role in producing high-performance magnets and components essential for chip manufacturing and advanced electronics.
“Taiwan’s supply chains are stable for now,” the ministry said in a statement, “but we continue to assess potential ripple effects on the semiconductor sector, especially regarding costs and production timelines.” Industry analysts echoed this caution, warning that even indirect disruptions could impact the global chip market, given Taiwan’s dominance through major firms like the Taiwan Semiconductor Manufacturing Company (TSMC).
China’s move comes amid escalating trade tensions with the United States and its allies, as rare earths often called the “vitamins of modern industry” have become a geopolitical weapon in global technology competition. By asserting its independence from Chinese materials, Taiwan seeks to reassure international partners of its resilience and strategic preparedness.
As nations worldwide race to secure their own rare earth reserves and develop recycling technologies, Taiwan’s statement underscores its commitment to maintaining technological sovereignty. With the semiconductor sector at the heart of global innovation and security, the island’s vigilance over material access could shape the next phase of the tech rivalry between Beijing and the democratic world.