October 10, 2025

China just turned up the heat on rare earth exports! On Thursday, its Ministry of Commerce rolled out tighter rules that expand control over rare earth processing technology. The new rules forbid unauthorized overseas cooperation and make it clear that exports to defense and semiconductor users abroad will face tough limits. This is a big step after China shook the world in April with sweeping export controls that created serious shortages everywhere. Back then, the chaos calmed a bit after China struck deals with Europe and the U.S. But now, Beijing’s back with sharper restrictions. Why does China matter so much? The country produces around 60% of the world's mined rare earths and dominates 90% of the processed materials and permanent magnets that power everything from electric cars to aircraft engines and military radars. The fresh controls expand restrictions on exporting technology to make rare earth magnets — now covering more kinds of magnets. Even the equipment used to recycle rare earths needs a licence to export. Plus, manufacturers overseas using Chinese parts or machines must get licences for controlled exports. For the first time, China spelled out exactly who gets blocked: overseas defense users won’t get any export licences. Meanwhile, requests associated with advanced semiconductor tech will be judged carefully on a case-by-case basis. To top it off, Chinese companies working abroad can’t team up with foreign firms on rare earth materials without official permission from the ministry. In other words, China is tightening its grip, aiming to keep rare earth secrets and supplies firmly in its own hands. The world will be watching how this reshapes tech and defense supply chains going forward!

Read More at Economictimes →

Tags: China, Rare earths, Export controls, Semiconductors, Defense, Trade restrictions,