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China’s Ministry of Commerce has announced stricter export controls on rare earth elements, further limiting the global supply of these critical materials. The new measures, revealed on Thursday, expand restrictions on the export of rare earth processing and manufacturing technologies. They also prohibit Chinese companies from engaging in unauthorized international cooperation involving these technologies.
The move underscores China’s growing emphasis on national security and technological sovereignty. Rare earths—17 metallic elements essential in producing electric vehicles, wind turbines, semiconductors, and military equipment—are a cornerstone of modern industry. As the world’s dominant supplier, China controls over 70% of global production and refining capacity, giving it substantial leverage in global supply chains.
According to the Ministry, the tighter regulations aim to safeguard “national interests and industrial security.” Exporters must now obtain special licenses to share or sell related processing technologies abroad. Companies that violate these rules could face severe penalties, including loss of export privileges and legal prosecution.
Analysts view the new restrictions as part of Beijing’s broader strategy to strengthen control over strategic resources amid ongoing geopolitical tensions, particularly with the United States and its allies. The move may also accelerate efforts by other nations to diversify their rare earth supply chains and invest in domestic production.
China’s decision follows previous export control updates introduced in 2023, which added gallium and germanium—key semiconductor materials—to its restricted list. Industry observers expect these latest measures to impact global prices and disrupt high-tech manufacturing sectors dependent on Chinese rare earth exports.
This tightening of rare earth export controls highlights China’s commitment to preserving its dominance in critical mineral technologies while balancing global demand and geopolitical influence.
