China Tightens Rare Earth Export Controls, Expands Restrictions on Technologies and Global Use
China has announced a major expansion of its restrictions on rare earth exports, further tightening control over the critical minerals that power global industries. The move adds new materials and technologies to Beijing’s control list and extends oversight to their use abroad — including applications in military equipment and semiconductor manufacturing.
The decision, unveiled Thursday by China’s Ministry of Commerce, underscores Beijing’s growing leverage in the global rare earth market and its strategic use of these materials amid ongoing trade tensions with the United States. The timing is significant, coming just weeks before Chinese President Xi Jinping is expected to meet U.S. President Donald Trump at the APEC summit in South Korea later this month.
China Expands Its Grip on Rare Earths
China, which dominates the world’s rare earth refining and processing, has long viewed the sector as a strategic asset. The newly expanded rules add five rare earth elements — holmium, erbium, thulium, europium, and ytterbium — to the export control list, raising the total number of restricted elements to 12 out of 17.
These rare earths are crucial for producing everything from smartphones and electric vehicles to fighter jets and advanced missiles. Under the new rules, Chinese exporters must obtain licenses not only to sell these materials but also to share mining, smelting, processing, or magnet manufacturing technologies with foreign partners.
The restrictions also apply to foreign companies that supply products using rare earths mined or processed in China. Beijing’s Ministry of Commerce stated that these measures are designed to “protect national security and interests” and prevent materials from being used in “military or other sensitive fields.”
Stricter Controls on Military and High-Tech Applications
The ministry made clear that export licenses will be rejected “in principle” for any military use or transactions involving defense contractors. Exports intended for use in semiconductors, artificial intelligence, and advanced computing — sectors that could potentially have military applications — will face rigorous case-by-case reviews.
Furthermore, Chinese nationals and companies are now prohibited from assisting with rare earth mining, processing, or magnet production overseas without prior government approval. This extraterritorial measure aims to stop the unauthorized transfer of Chinese rare earth technologies abroad.
New Restrictions on EV and Battery Materials
In addition to rare earths, Beijing also announced new restrictions on materials critical to electric vehicle production. The export of lithium batteries, synthetic graphite anode materials, and related production technologies will now require licenses.
These restrictions take effect in stages — with new rare earth, lithium, and graphite controls beginning November 8, and overseas cooperation rules becoming enforceable from December 1. Some restrictions went into immediate effect on Thursday.
Strategic Timing Amid Renewed U.S.-China Tensions
The timing of the new restrictions reflects China’s strategic response to renewed trade tensions with Washington. Just last week, the U.S. expanded its sanctions on Chinese tech firms, extending them to subsidiaries involved in advanced chip production — a move that drew sharp criticism from Beijing.
On the same day as the new rare earth announcement, China’s commerce ministry also added 14 foreign entities to its “unreliable entity list,” effectively banning them from trading or investing in the country. Among them was TechInsights, a Canadian semiconductor research firm known for its detailed chip analyses.
TechInsights has previously published reports showing that some of Huawei’s AI processors used components produced by Taiwan’s TSMC — potentially violating U.S. export restrictions. Beijing’s move to blacklist the company appears to be a direct response to these revelations.
A Shift Toward Extraterritorial Enforcement
For years, China has criticized Washington for its so-called “long-arm jurisdiction” — U.S. export controls that prevent non-American companies from selling to China if their products contain U.S.-made technologies. However, Beijing’s latest actions represent a significant shift toward similar extraterritorial measures.
By extending its export controls beyond its borders, China is asserting a new level of global influence over the supply chain for rare earth materials and related technologies.
Rare Earths at the Center of Trade Rivalry
Rare earth elements have become a flashpoint in the economic standoff between the world’s two largest economies. Earlier this year, China restricted the export of seven types of rare earth materials in response to Trump’s tariffs on Chinese goods. The decision sent shockwaves through industries dependent on these elements, from electric car manufacturing to defense production.
Although a bilateral agreement on rare earth shipments was reached in June, easing some supply shortages, industries worldwide continue to feel the ripple effects.
In Thursday’s statement, the Chinese commerce ministry said investigations had revealed that some foreign entities had illegally transferred Chinese rare earths or technologies for use in sensitive or military purposes.
“These actions have caused significant harm to China’s national security and interests,” the ministry said. “They have also undermined international peace and stability and hindered global non-proliferation efforts.”
Protecting National Interests While Shaping Global Trade
Analysts say China’s move is both defensive and strategic — safeguarding domestic innovation while signaling that Beijing is willing to wield its dominance in rare earth production as geopolitical leverage. With China controlling nearly 90% of global rare earth processing, these restrictions could once again strain global supply chains.
Experts warn that the new rules may lead to price surges, production delays, and increased efforts by Western nations to develop alternative supply sources outside of China. The U.S. and its allies have already begun investing in rare earth projects in Australia, Canada, and Africa, though building processing capacity will take years.
Looking Ahead
As Xi and Trump prepare to meet later this month, rare earths will likely be a central topic of discussion. Beijing’s latest restrictions signal a clear message: China intends to use its dominance in critical minerals not just as an economic tool but as a geopolitical one.
Whether this leads to renewed cooperation or deeper confrontation remains to be seen, but one thing is certain — China’s tightening grip on rare earth exports marks a turning point in the global race for technological and industrial supremacy.