GreenergyDaily

Oct. 9, 2025

China tightened its rare earth export controls on Thursday, expanding restrictions on processing technology and spelling out its intention to limit exports to overseas defence and semiconductor users.

The Ministry of Commerce's announcement, which follows a U.S. lawmakers' call on Tuesday for broader bans on the export of chipmaking equipment to China, expands sweeping controls Beijing announced in April that caused shortages around the world before a series of deals with Europe and the U.S. eased the supply crunch.

China produces over 90% of the world's processed rare earths and rare earth magnets. The 17 rare earth elements are vital materials in products ranging from electric vehicles to aircraft engines and military radars.

China is also widening its export controls to foreign companies that use Chinese rare earth equipment or material, the Ministry of Commerce said in its statement, mimicking U.S. rules that restrict exports of semiconductor-related products.

The Ministry of Commerce's announcement clarified for the first time some of the targets of China's restrictions. Overseas defence users will not be granted licences, the ministry said, while applications related to advanced semiconductors will only be approved on a case-by-case basis.

The new extraterritorial rules will start on December 1, while the remainder commence immediately.