China flexes trade power with soaring use of export controls

China has escalated its use of export controls in 2026, leveraging trade restrictions as a strategic tool to assert economic dominance and counter Western sanctions. Key targets include advanced semiconductors, quantum computing components, and rare earth materials, disrupting global supply chains and pressuring foreign tech firms dependent on Chinese manufacturing. The move mirrors U.S. and EU export curbs on China, signaling a new phase in tech decoupling, with Beijing weaponizing its market position to retaliate against geopolitical restrictions. Analysts warn the controls could accelerate supply chain fragmentation, forcing companies to diversify sourcing or face production delays, particularly in quantum and AI sectors. Industry leaders report rising compliance costs and operational uncertainty, as China’s opaque enforcement mechanisms create legal risks for multinational corporations operating in the region.