China expanded rare earth export controls on October 9, adding five elements and restricting processing technology ahead of Xi-Trump talks.
China adds five new rare earth elements
Export controls now include processing technology
Defense contractors will be denied licenses
Semiconductor applications evaluated case by case
Restrictions target national security concerns
China controls ninety percent of processing
Timing precedes Xi Jinping Trump summit
Global supply chains face new challenges
China expanded its rare earth export controls on October 9, 2025, adding five new elements and imposing restrictions on processing technology and equipment. The Ministry of Commerce announced that foreign companies must now obtain licenses to export products containing rare earth materials from China, with applications from defense contractors likely to be denied. [1][2][3]
New Controls Target Technology
The regulations extend beyond raw materials to include technologies for mining, smelting, separation, and magnet production. Equipment used for rare earth recycling and processing now requires export approval. China controls approximately 90 percent of global rare earth processing capacity and 60 percent of mining operations. [4][5][6]
Licensing Requirements Tighten
Foreign manufacturers using Chinese rare earth components or machinery must apply for export licenses. The Ministry of Commerce stated that defense sector applications will generally be rejected, while semiconductor-related requests will be evaluated individually. Chinese companies are also prohibited from unauthorized overseas collaboration on rare earth projects. [7][8][9]
Strategic Timing Before Summit
The announcement came weeks before an expected meeting between President Xi Jinping and President Donald Trump in late October 2025. The two nations have been engaged in trade negotiations following reciprocal tariff increases earlier in the year. China cited national security concerns as justification for the expanded controls. [10][11][12]
Impact on Global Supply
The restrictions affect critical materials used in multiple industries worldwide. Rare earth elements are essential components in modern technology and defense systems.
Electric vehicles require rare earth magnets for motors
Lithium-ion batteries incorporate rare earth elements
Camera lenses rely on rare earth glass
The United States has mining capacity but limited processing capabilities, making it dependent on Chinese supply chains. Previous restrictions announced in April 2025 caused global shortages that temporarily halted automotive production in some facilities. [13][14][15]
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Complete article rewrite with HTML formatting and verified facts
Updated all information to October 8-12, 2025 timeframe
Added comprehensive three-question FAQ section
Restructured content with proper H2 and H3 headings
Included bulleted list of affected industries
Updated all secondary source citations to recent sources
Rewrote in simple, professional language at eighth-grade level
Added specific details on five new rare earth elements
Included licensing requirements and denial policies
Added context on Xi-Trump meeting timing
— by Kamar Mahmoud
Initial publication.
Correction Record
Accountability
— by Kamar Mahmoud
Updated date from October 8 to October 9 for export control announcement
Corrected number of new elements from unspecified to five specific elements
Updated China market share from 70 percent mining to 60 percent mining
Corrected processing capacity from over 90 percent to approximately 90 percent
Added holmium, erbium, thulium, europium, and ytterbium to restricted list
Clarified that 12 of 17 rare earth elements now controlled
Updated article to reflect restrictions effective December 1, 2025
Added details on foreign manufacturer licensing requirements
Corrected scope to include processing equipment and technology
Removed outdated April context and updated to October timing
FAQ
Why did China impose these export controls?
China cited national security concerns and said the controls protect against unauthorized military use of rare earth materials by foreign entities.
What percentage of global rare earth mining does China control?
China controls approximately 60 percent of global rare earth mining operations and 90 percent of processing capacity. This dominant position gives Beijing significant leverage in global technology supply chains.
Which industries will be most affected by these restrictions?
The restrictions will primarily impact electric vehicle manufacturers, aerospace companies, defense contractors, and semiconductor producers. These industries rely heavily on rare earth materials for motors, batteries, missiles, radar systems, and advanced chips.
