- China‘s Ministry of Commerce announced new export controls on rare earth elements, citing national security concerns.
- The ministry stated that the controls are not broad bans, and eligible civilian trade can still receive export licenses.
- China produces about 70% of the world’s rare earths and handles 90% of processing and refining, making global supply chains sensitive to its regulatory changes.
- The ministry called recent U.S. tariffs and export control threats a “double standard” and said it would respond with its own measures if needed.
- China said the expected impact on the broader rare earths supply chain would be “very limited,” and compliant commercial exports will be approved.
China’s Ministry of Commerce has introduced new rules on the export of rare earth elements, confirming on Sunday that the controls are intended to protect national security but are not sweeping bans. The new licensing process is set to apply to all rare earth exports beginning October 9.
A ministry spokesperson described the move as a long-term effort to improve China’s export control system, in accordance with local law and international non-proliferation agreements. The spokesperson said the rules are focused on medium- and heavy-type rare earths, which have uses in both civilian technology and military applications. Partners were informed in advance through regular export-control talks.
The ministry emphasized the measures will rely on a licensing system. “Licenses will be granted where applications qualify, and facilitation processes such as general licenses and exemptions are under consideration to support legitimate trade,” the spokesperson explained. The ministry clarified that rare earth exports for civilian use will be approved if compliant with regulations. It also predicted that the overall effect on supply chains would be minimal.
China currently accounts for roughly 70% of global rare-earth production and about 90% of the processing and refining capacity. Rare earths, a group of 17 elements, are essential for products such as electric vehicle motors, wind turbines, and defense electronics. Changes in regulations from China often result in global market impacts, even when final manufacturing occurs in other regions.
In response to recent statements from former U.S. President Donald Trump about a possible new 100% tariff on Chinese imports and proposed American export controls on critical technology, the ministry accused the United States of taking a “double standard” approach. The ministry called for consultation channels to resolve issues and signaled that China would take “resolute measures” to protect its economic interests if the U.S. actions intensified.
On shipping, the ministry criticized new U.S. port fees on Chinese-linked vessels and announced it will impose special charges on American-linked ships, calling these steps legal defensive countermeasures.
For more details, see the official Q&A here and former President Trump’s comments here.
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