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China has toughened its rules on the export of rare earths, crucial materials for many modern technologies from smartphones to fighter jets.

The move strengthens Beijing’s hand ahead of talks expected later this month between China’s President Xi Jinping and his US counterpart Donald Trump.

China’s Ministry of Commerce on Thursday announced tighter restrictions on exports of processing technology and hinted at limits on exports to foreign arms manufacturers and some semiconductor firms.

It follows calls in the US for stricter bans on exports of chip-making equipment to China, and mimics a measure Washington has used to restrict exports of semiconductor-related products to China.

“From a geostrategic perspective, this helps with increasing leverage for Beijing ahead of the anticipated Trump-Xi summit in (South) Korea later this month,” said Tim Zhang, founder of Singapore-based Edge Research.

The rules give China more control over the global rare-earth supply chain – a major sticking point in recent lengthy trade negotiations with Washington.

China’s rare earth dominance

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China accounts for nearly 70% of the world’s rare earths mining and controls roughly 90% of global rare earths processing.

The 17 rare earth elements are used in products across society, including electric vehicles and military radars.

China’s dominance has given it a cutting edge over the clean technologies of the future, including electric vehicles and wind turbines.

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China’s Silicon Valley: ‘It’s our time to battle’

In April, it announced sweeping controls in retaliation for tariffs imposed by the Trump administration, which caused worldwide shortages until a series of deals with Europe and the US somewhat eased the crunch.

Under the new rules coming into effect in December, foreign companies will have to get special approval to export items that contain even small traces of rare earths elements sourced from China.

Permits will also be required for exports of any technology related to rare earth mining, smelting, recycling and magnet-making – though it’s not yet clear how China would enforce these policies overseas.

The new restrictions are to “better safeguard national security” and to stop uses in “sensitive fields such as the military”, the Commerce Ministry said.

It said some “overseas bodies and individuals” had transferred rare earths elements and technologies from China abroad for defence or other sensitive uses, which caused “significant damage” to its national security.

“Rare earths will continue to be a key part of negotiations for Washington and Beijing,” said George Chen, a partner at The Asia Group.

“Both sides want more stability, but there will be still a lot of noises before the two leaders, President Trump and Xi, can make a final deal next year when they meet. Those noises are all negotiation tactics.”

Warning solar panel prices will rise

Last week, analysts warned the cost of solar panels was about to jump by 9% after the Chinese government cancelled a VAT rebate on exports – combined with cuts to supply side production and restrictions on polysilicon production.

China makes more than 80% of the world’s solar modules and in doing so has driven down costs globally.

“With no possibility of alternative supply in the short term, developers will have little choice but to absorb these higher costs,” said Yana Hryshko from Wood Mackenzie, which produced the research.

“For developers globally, it means adjusting procurement expectations. And for policymakers, it’s a timely reminder of the risks inherent in concentrated supply chains.”

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How two years of war have shattered the Gaza Strip

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How two years of war have shattered the Gaza Strip

As a possible ceasefire takes shape, Palestinians face the prospect of rebuilding their shattered enclave.

At least 67,194 people have been killed, according to Gaza’s Hamas-run health ministry, the majority of them (53%) women, children and elderly people.

The war has left 4,900 people with permanent disabilities, including amputations, and has orphaned 58,556 children.

Altogether, one in ten Palestinians has been killed or injured since the war began following Hamas’s October 7, 2023 attack on southern Israel.

The attack killed 1,195 people, including 725 civilians, according to Israeli officials. The IDF says that a further 466 Israeli soldiers have been killed during the subsequent conflict in Gaza.

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Israel says a ceasefire is expected to begin within 24 hours after its government ratifies the ceasefire deal tonight.

Swathes of Gaza have been reduced to rubble

More than 90% of Palestinians in Gaza have been displaced, many of them multiple times, following Israeli evacuation orders that now cover 85% of the Gaza Strip.

Few of them will have homes to return to, with aid groups estimating that 92% of homes have been destroyed.

“Despite our happiness, we cannot help but think of what is to come,” says Mohammad Al-Farra, in Khan Younis. “The areas we are going back to, or intending to return to, are uninhabitable.”

The destruction of Gaza is visible from space. The satellite images below show the city of Rafah, which has been almost totally razed over the past two years.

In just the first ten days of the war, 4% of buildings in Gaza were damaged or destroyed.

By May 2024 – seven months later – more than 50% of buildings had been damaged or destroyed. At the start of this month, it rose to 60% of buildings.

A joint report from the UN, EU and World Bank estimated that it would take years of rebuilding and more than $53 billion to repair the damage from the first year of war alone.

A surge in aid

Central to the promise of the ceasefire deal is that Israel will allow a surge of humanitarian aid to enter the Gaza Strip.

The widespread destruction of homes has left 1.5 million Palestinians in need of emergency shelter items.

Many of these people are living in crowded tent camps along Gaza’s coast. That includes Al Mawasi, a sandy strip of coastline and agricultural land that Israel has designated a “humanitarian zone”.

Aid agencies report that families are being charged rent of up to 600 shekels (£138) for tent space, and over $2,000 (£1,500) for tents.

Israel has forbidden the entry of construction equipment since the war began and has periodically blocked the import of tents and tent poles.

Restrictions on the entry of food aid have created a famine in Gaza City, and mass hunger throughout the rest of the territory.

Data from Israeli border officials shows that the amount of food entering Gaza has frequently been below the “bare minimum” that the UN’s famine-review agency says is necessary to meet basic needs.

As a result, the number of deaths from malnutrition has skyrocketed in recent months.

To date, Gaza’s health ministry says, 461 people have died from malnutrition, including 157 children.

“Will Netanyahu abide this time?”

As talks of a ceasefire progressed, the Israeli assault on Gaza City continued.

Footage shared on Tuesday, the two-year anniversary of the war, showed smoke rising over the city following an airstrike.

A video posted on Wednesday, verified by Sky News, showed an Israeli tank destroying a building in the city’s northern suburbs.

Uncertainty still remains over the future of Gaza, with neither Israel nor Hamas agreeing in full to the peace plan presented by US president Donald Trump. So far, only the first stage has been agreed.

A previous ceasefire, agreed in January, collapsed after Israel refused to progress to the agreement’s second stage. With that in mind, many in Gaza are cautious about their hopes for the future.

“Maybe we trust Trump, but will Netanyahu abide this time?,” asks Aya, a 31-year old displaced Palestinian in Deir al Balah.

“He has always sabotaged everything and continued the war. I hope he ends it now.”

Additional reporting by Sam Doak, OSINT producer.


The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

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Trump’s Gaza deal may not go down well with everyone – but for now, it’s a beacon of optimism

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Trump's Gaza deal may not go down well with everyone - but for now, it's a beacon of optimism

When the peace deal came, it came quickly.

Rumours had been spreading over the course of the day, anticipation grew. A source told me that a deal would be done by Friday, another said perhaps by Thursday evening.

Israel and Hamas agree to peace deal – live updates

They were both wrong. Instead, it came much sooner, announced by Donald Trump on his own social media channel. Without being anywhere near the talks in Egypt, the president was the dominant figure.

Few will argue that he deserves the credit for driving this agreement. We can probably see the origins of all this in Israel’s decision to try to kill the Hamas leadership in Doha.

The attack failed, and the White House was annoyed.

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‘Hostages coming back,’ Trump tells families

Arab states started to express themselves to Trump more successfully, arguing that it was time for him to rein in Benjamin Netanyahu and bring an end to the war.

They repeated the call at a meeting during the UN General Assembly, which seems to have landed. When the president later met Netanyahu, the 20-point plan was born, which led to this fresh peace agreement.

Donald Trump holds a note saying a deal is 'very close'. Pic: Reuters
Image:
Donald Trump holds a note saying a deal is ‘very close’. Pic: Reuters

Does it cover everything? Absolutely not. We don’t know who will run Gaza in the future, for a start, which is a pretty yawning hole when you consider that Gaza’s fresh start is imminent.

We don’t know what will happen to Hamas, or to its weapons, or really how Israel will withdraw from the Strip.

But these talks have always been fuelled by optimism, and by the sense that if you could stop the fighting and get the hostages home, then everything else might just fall into place.

Reaction to the peace deal in Tel Aviv from Einav Zangauker, whose son Matan is being held hostage. Pic: Reuters
Image:
Reaction to the peace deal in Tel Aviv from Einav Zangauker, whose son Matan is being held hostage. Pic: Reuters

In order to agree to this, Hamas must surely have been given strong assurances that, even at some level, its demands for Palestinian self-determination would bear fruit. Otherwise, why would the group have given up their one trump card – the 48 hostages?

Once they have gone, Hamas has no leverage at all. It has precious few friends among the countries sitting around the negotiating table, and it is a massively depleted fighting force.

So to give up that power, I can only assume that Khalil al-Hayya, the de facto Hamas leader, got a cast-iron guarantee of… something.

Arab states will greet this agreement with joy. Some of that is to do with empathy for the Palestinians in Gaza, where 67,000 people have been killed and more than 10% of the population has become a casualty of war.

An Israeli soldier stands next to the parcels of humanitarian aid awaiting to be transferred into Gaza in July. File pic: Reuters
Image:
An Israeli soldier stands next to the parcels of humanitarian aid awaiting to be transferred into Gaza in July. File pic: Reuters

But they will also welcome a path to stability, where there is less fear of spillover from the Gaza conflict and more confidence about the region’s economic and political unity.

Trump’s worldview – that everything comes down to business and deal-making – is welcomed by some of these leaders as a smart way of seeing diplomacy.

Jared Kushner has plenty of friends among these nations, and his input was important.

Read more about 7 October:
‘It is trauma’: Two lives torn apart
‘Instead of getting married, they got buried together’

For many Israelis, this comes down to a few crucial things. Firstly, the hostages are coming home. It is hard to overstate just how embedded that cause is to Israeli society.

The return of all 48, living and dead, will be a truly profound moment for this nation.

Secondly, their soldiers will no longer be fighting a war that, even within the higher echelons of the military, is believed to be drifting and purposeless.

Thirdly, there is growing empathy for the plight of the Gazans, which is tied to a fourth point – a realisation that Israel’s reputation on the world stage has been desperately tarnished.

Some will object to this deal and say that it is too weak; that it lets Hamas off the hook and fails to punish them for the atrocities of 7 October.

It is an accusation that will be levelled by far-right members of Netanyahu’s coalition government. It could even collapse the administration.

But for most people, in Israel, Gaza, across the Middle East and around the world, it is a moment of relief. Last week, I was in Gaza, and the destruction was absolutely devastating to witness.

Whatever the compromises, the idea that the war has stopped is, for the moment at least, a beacon of optimism.

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All the hostages believed to be alive and who are due for release

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All the hostages believed to be alive and who are due for release

As Israel and Hamas finally strike a deal aimed at bringing an end to the war in Gaza, we take a look at the hostages still believed to be alive and who are set to return home any day now.

Israel says that of the 250 initially taken captive in Hamas’s 7 October attack, 20 of the hostages that remain in Gaza are thought to be alive and 28 are dead.

As part of the first phase of the peace deal brokered by US President Donald Trump, some hostages will be released and Israeli soldiers will start withdrawing from Gaza.

On Thursday, Israel said the deal had been signed and the ceasefire would go into force within 24 hours of a cabinet meeting. After that period, the hostages in Gaza will be freed within 72 hours, an Israeli government spokeswoman said.

Here are the hostages believed to be alive and who could soon be returning home after two years of captivity in the besieged enclave of Gaza:

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