China Tightens Rare Earth Export Rules Amid Trade Tensions and National Security Concerns

China has strengthened its controls on the export of rare earth elements, critical components in a wide range of high-tech products. The Ministry of Commerce announced new regulations aimed “to safeguard national security,” formalizing existing restrictions on processing technology and unauthorised cooperation with foreign companies. Observers say the move is likely to block exports to foreign arms manufacturers and certain semiconductor firms.

Rare earth exports have become a contentious point in ongoing trade and tariff negotiations between Beijing and Washington. The announcement comes ahead of a scheduled meeting later this month between Chinese President Xi Jinping and U.S. President Donald Trump. According to the Ministry of Commerce, technology used to mine and process rare earths, or to manufacture magnets from these elements, can only be exported with government permission.

Many of these technologies were already subject to restrictions. In April, China added several rare earth elements and related materials to its export control list, causing significant supply shortages. The latest regulations, however, clarify that licenses are unlikely to be issued to arms manufacturers and certain companies in the chip industry. Chinese firms are also prohibited from collaborating with foreign entities on rare earths without government approval.

China has faced accusations from the U.S. and other Western countries of aiding Russia’s war in Ukraine by allowing dual-use technology exports—materials that can serve civilian or military purposes—to reach Moscow. Beijing has consistently denied these allegations.

The new announcement provides detailed guidance on which technologies and processes are restricted. These include mining, smelting, separation, manufacturing of magnetic materials, and recycling rare earths from other sources. In addition, the assembly, debugging, maintenance, repair, and upgrading of production equipment are all barred from export without government authorization.

Industry analysts note that the restrictions could affect the United States, which has a substantial rare earths mining sector but limited domestic processing capacity, potentially heightening its reliance on Chinese technology for refining and manufacturing.

By fLEXI tEAM