China Locks Down Rare-Earth Tech: Export Curbs Deepen

October 9, 2025 — by wiobs

China’s commerce ministry tightens controls on rare-earth tech exports and overseas partnerships raising stakes for global supply chains and strategic industries.

In a decisive move, China’s Ministry of Commerce has ramped up its grip on rare-earth exports, tightening restrictions on key processing and manufacturing technologies and forbidding unauthorised international cooperation. The change signals Beijing’s intent to control the most sensitive links in the rare-earth value chain a shift with global reverberations for industries from defense to electric vehicles.

China’s rare-earth dominance

China already holds overwhelming sway in the rare-earth sector: it processes an estimated 90 percent of the world’s rare-earth output and is home to large domestic reserves.

In April 2025, China’s Ministry of Commerce and General Administration of Customs unveiled Announcement 18, imposing export licenses on a suite of medium and heavy rare-earth materials, along with their oxides, alloys, and compounds.

This isn’t an isolated move. Over recent years, China has expanded export controls to minerals and tech beyond rare earths, such as gallium, germanium, and antimony, positioning export rules as instruments of trade leverage.

Stricter controls, more categories

On October 9, 2025, China announced a fresh wave of export constraints that go beyond raw materials. The new rules:

Limit exports of a broader array of rare-earth processing and manufacturing technologies.
Ban unauthorised overseas cooperation, effectively shutting off many foreign joint ventures or research partnerships that lack prior approval.
Mandate tighter licensing and compliance oversight for firms seeking to export rare-earth-derived technologies.

These steps reinforce and expand upon the April controls, narrowing the pathways through which foreign actors can access advanced segments of China’s rare-earth capabilities.

Reactions, approvals, and tension

Some foreign industry groups have expressed frustration at the opaque, slow approval process. According to insiders, even non-controlled items have been delayed at customs, out of caution that shipments may be flagged due to association with restricted goods.

Still, Beijing has hinted at selective flexibility. Reports suggest the government may ease curbs somewhat for semiconductor firms particularly those based in China or Europe to avoid bottlenecks in chip supply chains.

In diplomacy, Chinese Foreign Minister Wang Yi downplayed European concerns, calling the measures “standard export control practice” for dual-use goods but noting that valid applications would still be honored.

Expert Insight / Public Reaction

Jens Eskelund, head of the EU Chamber of Commerce in China, cautioned that delays in approval risk undermining global manufacturing lines: “Many European production lines will come to a halt very soon due to the shortage of crucial inputs.”

On the flip side, Chinese officials argue that these steps are in line with national security imperatives and international nonproliferation obligations. The assertion is that some rare-earth technologies qualify as “dual-use” and must be treated like sensitive exports.

Industry insiders, meanwhile, warn that such broad controls could stoke further efforts globally to decouple from sourcing to refining for high-stakes materials. The move pits China’s desire for strategic restraint against global pressure for supply chain resilience.

Pressures on global supply chains

The tighter rules could ripple across key sectors:

Automotive & EVs: Rare-earth magnets (especially those made from dysprosium, neodymium, terbium) are essential for electric motor efficiency. Delays or cuts in supply could affect vehicle launches and costs.
Defense & aerospace: Many military systems rely on rare-earth–based magnets, sensors, lasers, and guidance systems. Controlling the tech component narrows access for foreign defense producers.
Technology & electronics: From wind turbines to mobile phones and advanced sensors, rare-earth derivatives are pervasive. Supply constraints trickle into cost pressures and R&D bottlenecks.

Accelerating diversification

Countries and companies are doubling down on strategies they’ve long debated:

Building rare-earth refining capacity outside China, especially in Australia, North America, and Africa
Recycling rare-earth elements from electronic waste
Investing in materials science research to reduce reliance on “heavy” rare-earths or find alternatives
Striking supply pacts with new producers or governments willing to host processing facilities.
An academic study also highlights that global exposure to rare-earth risks is most acute at intermediate input stages. In other words, the chokepoint isn’t just mining it’s the conversion and manufacturing stages that amplify vulnerability.

Geopolitical leverage

China’s move underscores how deeply intertwined industrial policy and international diplomacy now are. Export controls are effectively diplomatic tools a message that Beijing can shape who gets what materials and when.

However, using such levers also carries risk: as foreign buyers accelerate shifts away from Chinese dominance, the very dependency China relies upon may erode over time.

China’s latest tightening of rare-earth export rules marks an escalation of its long-term strategy to control value-added segments of a vital global resource. What began as licensing measures for specific materials has now evolved into sweeping constraints on technology, overseas partnerships, and sensitive cooperation.

For industries that rely on rare-earth–derived components from electric cars to defense systems these shifts come at a precarious moment. As delays mount, supply chains strain, and investment decisions recalibrate, the scramble is already underway to build alternative, resilient sources of these critical materials.

In effect, Beijing’s move isn’t just about minerals; it’s about shaping who has access to the future of high-tech manufacturing. For buyers and policymakers worldwide, the message is clear: diversify and fast.

(Disclaimer: This article is based on publicly available reporting and documents as of October 2025. All facts have been verified to the best of our ability; however, developments may evolve. Readers should consult original sources or expert analysis for investment or policy decisions.)

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China Locks Down Rare-Earth Tech: Export Curbs Deepen

China’s rare-earth dominance

China already holds overwhelming sway in the rare-earth sector: it processes an estimated 90 percent of the world’s rare-earth output and is home to large domestic reserves.

In April 2025, China’s Ministry of Commerce and General Administration of Customs unveiled Announcement 18, imposing export licenses on a suite of medium and heavy rare-earth materials, along with their oxides, alloys, and compounds.

This isn’t an isolated move. Over recent years, China has expanded export controls to minerals and tech beyond rare earths, such as gallium, germanium, and antimony, positioning export rules as instruments of trade leverage.

Stricter controls, more categories

On October 9, 2025, China announced a fresh wave of export constraints that go beyond raw materials. The new rules:

Limit exports of a broader array of rare-earth processing and manufacturing technologies.

Ban unauthorised overseas cooperation, effectively shutting off many foreign joint ventures or research partnerships that lack prior approval.

Mandate tighter licensing and compliance oversight for firms seeking to export rare-earth-derived technologies.

These steps reinforce and expand upon the April controls, narrowing the pathways through which foreign actors can access advanced segments of China’s rare-earth capabilities.

Reactions, approvals, and tension

Some foreign industry groups have expressed frustration at the opaque, slow approval process. According to insiders, even non-controlled items have been delayed at customs, out of caution that shipments may be flagged due to association with restricted goods.

Still, Beijing has hinted at selective flexibility. Reports suggest the government may ease curbs somewhat for semiconductor firms particularly those based in China or Europe to avoid bottlenecks in chip supply chains.

In diplomacy, Chinese Foreign Minister Wang Yi downplayed European concerns, calling the measures “standard export control practice” for dual-use goods but noting that valid applications would still be honored.

Expert Insight / Public Reaction

Jens Eskelund, head of the EU Chamber of Commerce in China, cautioned that delays in approval risk undermining global manufacturing lines: “Many European production lines will come to a halt very soon due to the shortage of crucial inputs.”

On the flip side, Chinese officials argue that these steps are in line with national security imperatives and international nonproliferation obligations. The assertion is that some rare-earth technologies qualify as “dual-use” and must be treated like sensitive exports.

Industry insiders, meanwhile, warn that such broad controls could stoke further efforts globally to decouple from sourcing to refining for high-stakes materials. The move pits China’s desire for strategic restraint against global pressure for supply chain resilience.

Pressures on global supply chains

The tighter rules could ripple across key sectors:

Automotive & EVs: Rare-earth magnets (especially those made from dysprosium, neodymium, terbium) are essential for electric motor efficiency. Delays or cuts in supply could affect vehicle launches and costs.

Defense & aerospace: Many military systems rely on rare-earth–based magnets, sensors, lasers, and guidance systems. Controlling the tech component narrows access for foreign defense producers.

Technology & electronics: From wind turbines to mobile phones and advanced sensors, rare-earth derivatives are pervasive. Supply constraints trickle into cost pressures and R&D bottlenecks.

Accelerating diversification

Countries and companies are doubling down on strategies they’ve long debated:

Building rare-earth refining capacity outside China, especially in Australia, North America, and Africa

Recycling rare-earth elements from electronic waste

Investing in materials science research to reduce reliance on “heavy” rare-earths or find alternatives

Striking supply pacts with new producers or governments willing to host processing facilities.

An academic study also highlights that global exposure to rare-earth risks is most acute at intermediate input stages. In other words, the chokepoint isn’t just mining it’s the conversion and manufacturing stages that amplify vulnerability.

Geopolitical leverage

China’s move underscores how deeply intertwined industrial policy and international diplomacy now are. Export controls are effectively diplomatic tools a message that Beijing can shape who gets what materials and when.

However, using such levers also carries risk: as foreign buyers accelerate shifts away from Chinese dominance, the very dependency China relies upon may erode over time.

In effect, Beijing’s move isn’t just about minerals; it’s about shaping who has access to the future of high-tech manufacturing. For buyers and policymakers worldwide, the message is clear: diversify and fast.