• The US is considering broad restrictions on exports to China involving US software.
• Proposed measures include 100% tariffs on Chinese shipments and limiting software-powered goods.
• This response comes after China's recent expansion of export curbs on rare earth minerals.
• Analysts warn of significant disruptions to global trade and potential economic repercussions for the US.

The Trump administration is contemplating extensive restrictions on exports to China that involve U.S. software. This proposal aims to retaliate against China's recent export limits on rare earth minerals, crucial for technology manufacturing, and could cover a wide range of products such as laptops and jet engines. The possibility of such measures marks a significant escalation in trade tensions between the two nations, particularly as President Trump had previously announced a 100% tariff on certain Chinese shipments by November 1, according to Reuters and Channel News Asia.

The anticipated export controls echo restrictions previously enacted against Russia after its invasion of Ukraine and signal a possible intensification of U.S.-China relations. An official noted that "everything imaginable is made with U.S. software," underscoring the comprehensive nature of these restrictions, reports India Times and Channel News Asia.

Responses from China have been resolute, with officials denouncing the potential U.S. measures as "unilateral long-arm jurisdiction," threatening to initiate their own measures to safeguard their interests. Following the announcement of these export controls, President Trump labelled China's latest export restrictions as "a moral disgrace," further heightening the stakes before his scheduled meeting with Chinese President Xi Jinping at the upcoming APEC summit, according to Reuters and India Times.

While the document outlining the detailed implementation of these controls remains unclear and may not be put into practice, U.S. officials are considering this approach to apply pressure on China without immediate enforcement of the measures. Discussions are also taking place about narrower proposals, which might mitigate the economic fallout of a full-scale trade disruption, citing sources from Channel News Asia and Reuters.