China has introduced export controls on rare earth production technology, effective immediately, as part of its strategy to reinforce its dominance in this sector amid rising tensions with the United States.
Scope of New Export Controls
On October 8, 2025, China announced a significant expansion of its export controls related to rare earth materials and associated technologies. The Ministry of Commerce declared immediate restrictions on the export of technologies involved in rare earth mining, smelting, separation, metal smelting, magnetic material manufacturing, and recycling of secondary rare earth resources. This includes technologies for the assembly, debugging, maintenance, repair, and upgrading of production lines associated with these processes, which cannot be exported without official approval.[1][2][3]
Strategic Intent and Impact
These measures constitute a major upgrade from China’s previous rare earth export controls, which primarily focused on raw materials. By expanding controls to technology and intellectual property, China aims to deepen foreign dependence on Chinese expertise while maintaining robust domestic production. As Wang Dan, China director at Eurasia Group, explained, although the restrictions will scarcely affect Chinese production capacity, they will strengthen China’s leverage amid intense technological and trade rivalry with the United States.[3][4]
Licensing and Dual-Use Export Permits
The announcement also mandates that any foreign entities exporting rare earth materials produced or processed in China apply for a dual-use export permit from the Ministry of Commerce, effective immediately. The ministry underscored that export licenses will generally be denied to overseas military users, defense contractors, and semiconductor sector entities regarded as sensitive due to potential military applications. License applications related to advanced computing memory chips and artificial intelligence technologies with military potential will be evaluated on a case-by-case basis.[5][6][1]
Broader Context and Significance
Rare earth elements are critical components used in a wide range of high-tech products, including electric vehicles, smartphones, aerospace systems, and military equipment. China currently accounts for about 70% of global rare earth mining and over 90% of heavy rare earth processing capacity. The tightening of export controls reflects Beijing’s strategic move to protect national security interests and solidify its dominance in this critical industry amid escalating U.S.-China trade tensions. These controls coincide with ongoing trade negotiations and the upcoming meeting between President Xi Jinping and U.S. President Donald Trump.[7][8][3]
International Reactions and Implications
The new regulations mark part of a broader pattern of China’s efforts to safeguard technological advantages in strategic sectors. They also serve as a counterbalance to U.S. export restrictions on semiconductor and related technologies, reflecting the competitive geopolitical landscape around critical minerals and high-tech supply chains. The expanded export controls may complicate foreign access to key rare earth technologies and materials, impacting industries globally, particularly in the United States, which has mining capacity but limited processing capabilities.[9][2][8]
