As German firms wrestle with new Chinese controls on rare earths, they are handing Beijing sensitive supply chain information it could potentially use to squeeze manufacturers or shut down production lines in Europe’s biggest economy.
Yet even as German companies divulge commercial secrets to China, their own government is flying blind, according to people familiar with the matter. While Chinese officials demand detailed information before they approve exports of the rare earth elements used in a vast array of modern products, Berlin has no such leverage over its own companies, and no immediate strategy to tackle the problem, the people ...