Apple and several tech giants have avoided a major crisis with China after it became clear that the new restrictions on rare metal exports announced by Beijing do not include materials used in semiconductor chip manufacturing.

Reports indicated that China plans to impose a mandatory licensing system on its rare metal exports, which account for about 90% of global production, raising concerns that Beijing might restrict tech companies’ access to vital chip-making materials.

This move caused panic among investors, as companies like TSMC, Samsung, and SK Hynix rely on these metals to manufacture processors powering products from Apple, Nvidia, and Qualcomm, according to a report published by phonearena and reviewed by Al Arabiya Business.

If the restrictions had included those materials, Apple would have lost the ability to produce iPhone chips in the event of military tensions around Taiwan.

On Sunday, Taiwan’s Ministry of Economic Affairs clarified that the Chinese measures target different types of metals used in drone and electric vehicle manufacturing, not in semiconductor chips.

China confirmed that the purpose of the restrictions is to prevent the use of metals for military purposes, and the new regulations will take effect on November 8.

This comes as the West continues efforts to reduce its dependence on China.

The U.S. Department of Defense has allocated hundreds of millions of dollars to support local mining operations and develop alternatives to rare metals, aiming to secure the technological supply chain amid rising geopolitical competition between Washington and Beijing.

Analysts view the recent crisis as an early warning: even if the chip sector survived this round, any new Chinese escalation could disrupt the global industry and place companies between the hammer of politics and the anvil of technology.