China on October 12, 2025 defended new export controls on rare earth elements as legitimate under international law, dismissing United States accusations of economic coercion. The Chinese Ministry of Commerce announced the restrictions on October 9, aimed at safeguarding national security and global peace. These measures require foreign entities to obtain licenses for exporting products containing over 0.1 percent of Chinese rare earths, with applications linked to military or terrorist use facing denial. China processes approximately 90 percent of global rare earths and controls 70 percent of supply. [1][2][3]
Beijing Defends Export Control Framework
The Ministry of Commerce stated the new regulations enhance the export control system and support regional stability amid escalating global security challenges. [1] The controls extend beyond rare earth materials to include associated intellectual property and processing technologies. [2] A ministry spokesperson clarified that these measures do not constitute export bans, and applications meeting established criteria will receive approval. [1] Officials expressed confidence that supply chain disruption will remain minimal following comprehensive impact assessments. [3]
Licensing Requirements and Thresholds
Foreign companies must now secure Beijing approval to export products containing more than 0.1 percent domestically sourced rare earths or items produced using Chinese extraction, refining, magnet production, or recycling technologies. [1][7] The ministry indicated it engaged relevant countries through bilateral channels before announcing the controls. [1]
Washington Retaliates With Tariff Escalation
U.S. President Donald Trump responded on October 10, announcing 100 percent tariffs on Chinese imports beyond existing duties, effective November 1, 2025. [1][8] Trump simultaneously declared export controls on all critical software starting the same date. [1] The Chinese Ministry of Commerce accused Washington of practicing double standards, noting the U.S. control list encompasses over 3,000 items while China restricts fewer than 1,000. [1] China announced it will charge U.S. vessels docking fees at Chinese ports beginning October 14, directly countering Washington’s decision to impose fees on Chinese ships at U.S. ports effective the same date. [1]
Strategic Rare Earth Dominance
China maintains critical leverage in the rare earths market through processing and supply control. The restrictions come ahead of a potential summit between Trump and Chinese President Xi Jinping later in October. [1][2]
- China processes 90 percent of global rare earth elements [2]
- China supplies approximately 70 percent of worldwide rare earth materials [1]
- Twelve of seventeen rare earth metals now face Chinese export restrictions [7]
- New controls apply to holmium, erbium, thulium, europium, and ytterbium [7]
- Seven rare earths restricted since April 2025 include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium [7]
- Restrictions cover lithium batteries and specific graphite types [2]
- Export controls on rare earth processing technologies take effect December 1 [7]
- Beijing has consistently used rare earths as negotiation leverage in trade disputes [1]
Trade discussions between the two nations resumed earlier in 2025, yielding limited progress before recent actions escalated tensions. [1] Trump threatened to cancel the planned Xi meeting amid heightened disagreements over export policies. [1] Both governments face challenges navigating trade negotiations in the coming weeks. [1][8]
