Thibault Denamiel from the Center for Strategic and International Studies emphasized that the current measures align with existing U.S. policy trajectories.

Companies like Empyrean and Jiangsu Nata Opto-Electronic Material are confident in their ability to maintain operations by relying on local supply chains.

The U.S. has implemented export controls on computer chip-making equipment and high-bandwidth memory chips, leading China to retaliate by banning exports of key materials like gallium and germanium.

Despite the announcement of these restrictions, Nvidia's stock rose by 0.5%, indicating a lack of immediate negative impact on its market performance.

The new trade rules, which had been in development for some time, fell short of earlier proposals, resulting in a rally among semiconductor supply chain companies.

SK Hynix is expected to benefit in the long term from production challenges faced by Chinese competitors, potentially leading to higher DRAM prices.

Most companies affected by the new export restrictions are based in China, with a few located in Japan, South Korea, and Singapore.

These restrictions come just weeks before President Biden's term ends, as Donald Trump prepares to take office again.

Experts note that while these actions reflect continuity in U.S. policy, they may not significantly escalate control efforts compared to what the incoming Trump administration might propose.

MP Materials has seen a significant stock price increase and reported record production, positioning itself favorably amidst the changing landscape.

The long-term effects of these trade regulations are still unfolding, with companies bracing for potentially stricter tariffs if negotiations stall.

Industry experts warn that various sectors, including automotive and electronics, may face challenges due to these developments, complicating international trade amid rising tensions.