China tightens controls on rare earth exports amid ongoing trade tensions with US

Photo: Shutterstock, photo editor: Milosh Muratovskiy

China has imposed new restrictions on exports of rare earth elements. These materials are key to advanced technologies. The move expands China’s control over a supply chain vital to global manufacturing, as the country produces about 61% of the world’s rare earth supply and handles over 90% of the industry’s processing, according to the BBC.

China’s Commerce Ministry announced new rules requiring foreign companies to obtain government approval for exporting products with rare earths. Companies must also disclose the intended use of these materials. Beijing stated the measures are meant to protect national security. Chinese companies now need official approval to work with foreign partners on rare-earth projects linked to manufacturing lithium batteries and some graphite products, essential for electric vehicles, renewable energy and electronics.

The controls include technologies for mining, smelting, separation, magnet production and recycling. They also affect the export of related machinery and maintenance services. Analysts say the move could disrupt global supply chains, as many other rare-earth element producers, including the U.S., lack large-scale processing facilities.

Experts see the timing as Beijing’s response to U.S. export bans on advanced semiconductor equipment. The restrictions come before a planned meeting between Chinese President Xi Jinping and U.S. President Donald Trump. The move highlights ongoing rivalry over technological dominance.