This essay explores China's December 2023 decision to prohibit the export of rare earth magnet manufacturing technology through the lenses of both economic nationalism and economic liberalism. The paper seeks to determine why China's export ban is rational by examining its reasons within the context of its larger economic strategies. The study examines China's dominance in the rare earth elements (REEs) market, emphasizing the US-China trade relationship. The article uses a qualitative technique that combines theoretical concepts and empirical data to investigate how the prohibition matches China's aims of technical self-sufficiency, economic security, and global competitiveness. The findings show that China's approach is motivated by a strategic desire to protect its technological advances, maintain its competitive advantage, and reduce reliance on foreign markets. While this protectionist move goes against liberal economic concepts such as free trade and limited government intrusion, it demonstrates China's determination to strengthen its national interests and technological autonomy. The analysis concludes that, while the export ban can potentially disrupt global supply networks, it is a planned effort to strengthen China's long-term economic and geopolitical prominence. This work adds to our understanding of the complex interplay between national policies and global economic processes, providing useful insights for policymakers and industry stakeholders.