China Targets Rare Earth Technologies with New Export Restrictions
(MENAFN) China has introduced a broad set of new export restrictions targeting rare earth–related technologies, further tightening its grip on a sector vital to global high-tech and defense industries, according to state media reports on Thursday.
The measures, announced by the Ministry of Commerce, place “controlled measures” on the export of critical technologies such as mining, smelting, magnetic material manufacturing, and recycling of rare earth elements. These new rules explicitly ban foreign cooperation in rare earth ventures without prior government consent, media said, an English-language outlet affiliated with state media.
The ministry stated the updated controls are aimed at “safeguard[ing] national security and interests.” The list of restricted items now includes both core and supporting technologies — ranging from production-line upgrades to data associated with rare earth processing.
"Technologies and related data involving rare earth mining, smelting and separation, metal smelting, magnetic material manufacturing and rare earth secondary resource recycling, as well as the assembly, maintenance and upgrading of related production lines, cannot be exported without official permission," the Commerce Ministry said.
The decision expands upon earlier curbs enacted in April, which disrupted global supply chains until fresh export arrangements with the U.S. and Europe partially restored trade flows.
The new regulations also extend to overseas-made products that incorporate Chinese rare earths. Foreign entities must now secure licenses from the ministry before exporting any item — such as permanent magnets or target materials — if it contains rare earths sourced from China and those materials contribute at least 0.1% to the item’s overall value.
In a significant escalation, the ministry further barred domestic companies from collaborating with international firms on rare earth–related projects without prior authorization.
"For non-controlled goods, technologies, or services, if the exporters know that they will be used for or substantially contribute to overseas activities related to rare earth mining, smelting and separation, metal smelting, magnetic material manufacturing, and rare earth secondary resource recycling, then they must apply for a dual-use item export license from the MOFCOM (Commerce Ministry) prior to exportation, in accordance with laws and regulations," the ministry said.
It emphasized that the “unauthorized provision of such items is prohibited.”
China dominates the rare earth sector, processing over 90% of the world’s supply. These materials are essential in the production of electric vehicles, wind turbines, aircraft engines, and advanced military systems such as radars.
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