Beijing tightens rare earth export controls, barring defence-related sales and imposing new limits on semiconductor and recycling technologies.
China on Thursday announced sweeping new restrictions on rare earth exports, expanding its control over critical minerals vital to global technology, defence, and renewable energy industries.
The Ministry of Commerce said the tightened measures would extend limits on rare earth processing and magnet-making technology, restrict unauthorized overseas cooperation, and specifically block exports to foreign defence industries and semiconductor manufacturers without official approval.
The new rules build on broad restrictions first issued in April 2025, which had temporarily caused global shortages before limited shipments resumed through diplomatic agreements with Europe and the United States.
China produces roughly 60% of the world’s rare earth ore and nearly 90% of processed materials and permanent magnets, which are essential for manufacturing electric vehicles, wind turbines, aircraft engines, precision weapons, and advanced electronics.
Under the expanded controls:
- Exporting magnet-making technology will now require government licensing across additional magnet types.
- Equipment used in rare earth recycling is newly added to the export-control list.
- Foreign manufacturers using Chinese machinery or materials in production must now apply for export licences when selling controlled products abroad.
- Overseas defence contractors will be denied export approvals, while semiconductor-related requests will be reviewed case by case, the ministry said.
In a notable addition, Chinese companies operating overseas have also been barred from engaging in rare earth ventures with foreign partners without prior authorization.
Analysts see the move as part of Beijing’s broader strategy to secure its dominance in critical mineral supply chains amid intensifying tech competition with the West.
