China announces strict controls on rare earth exports, prohibiting unauthorized foreign cooperation

China has announced a new round of stricter controls on rare earth exports, including increased restrictions on processing technology and a ban on Chinese companies collaborating with foreign countries without authorization.

On October 9, 2025 at 9:47 a.m., Reuters reported that The Chinese government has announced it will expand export controls on rare earths. It places restrictions on processing technology, prohibits unauthorized foreign cooperation, and clearly states its intention to restrict rare earth exports to the defense and semiconductor industries abroad.

The new measures, announced by China's Ministry of Commerce, clarified and expanded on an April announcement that created a global shortage of rare earths before China resumed some exports after reaching agreements with Europe and the United States.

China is the world's largest producer, accounting for around 60% of global production of rare earths and over 90% of the processing and production of permanent magnets, a key raw material in everything from electric cars to aircraft engines to military radars.

The new measures will require exports of technology used to produce rare earth magnets to be licensed, covering a wider range of magnet types, while equipment used to recycle rare earths will also be included in the category requiring export licenses, significantly lengthening the list of technologies controlled by China in the rare earth category.

The Ministry of Commerce also states that foreign manufacturers using parts or machinery from China to produce controlled goods must also apply for a license before exporting.

The announcement also clearly states for the first time that “Target group” The new restrictions state that overseas defense users will not be allowed to import rare earths from China, while applications related to the advanced semiconductor industry will be considered on a case-by-case basis.

Meanwhile, Chinese companies operating overseas will be prohibited from cooperating with foreign companies in rare earths unless they receive prior approval from the Ministry of Commerce.

This latest measure reflects Beijing's intention to use rare earths as a strategic tool, both to control the global technology industry's supply chain and to protect China's own security interests amid intensifying technological competition with the West.

refer : reuters.com

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