New Delhi, June 9 -- China's recent restrictions on rare earth resources are being seen as a response to US export controls on advanced semiconductor technology, according to a report by Jefferies.

The report highlighted that China is taking a strong stance because it wants access to advanced US semiconductors, which are crucial for upgrading its economy.

It said, "US needs China's rare earth resources just as much, if not more so, as China wants access to US advanced semiconductors".

Jefferies noted that the United States needs China's rare earth materials just as much, if not more, than China needs American semiconductors. These rare earth elements are essential for the production of many high-tech devices and defence equipment.

As ...