China tightens rare earth export rules, escalating global supply chain tensions

China has unveiled tougher regulations governing the export of rare earth elements, expanding state control over materials vital to the global technology, defense, and semiconductor sectors.

The Ministry of Commerce announced that exports involving rare earth processing and manufacturing technologies—especially those related to magnets and high-performance components—will now require explicit government approval. Related services, including equipment assembly, debugging, and maintenance, are also restricted without prior authorization.

These new measures come at a sensitive time in China–U.S. relations, with rare earths again emerging as a key pressure point in trade negotiations. The move precedes a possible meeting between Chinese President Xi Jinping and U.S. President Donald Trump, heightening the geopolitical stakes.

While many of these restrictions existed in some form, the new regulations codify and expand them, making clear that export licenses will likely be denied to foreign defense manufacturers and certain semiconductor companies. Chinese firms are likewise prohibited from forming unauthorized partnerships with overseas entities involving rare earth technologies.

The announcement is widely viewed as a strategic maneuver in the intensifying competition over critical mineral supply chains. China currently dominates the rare earth market, accounting for more than 70 percent of global production and nearly all processing capacity.

These 17 elements are essential to producing smartphones, electric vehicles, wind turbines, and precision-guided weapons. Although countries such as the United States and Australia have increased rare earth mining, refining and processing capabilities remain overwhelmingly concentrated in China, leaving global industries heavily dependent on Beijing.

Washington has long accused China of weaponizing this dominance, citing national security risks and potential links to dual-use technologies that could aid other military powers such as Russia—an allegation Beijing denies.

Industry observers warn that the new restrictions could further disrupt global supply chains, particularly in the defense and semiconductor sectors, where the U.S. remains vulnerable due to limited domestic processing infrastructure.

In April, China added several rare earth materials to its export control list, triggering global shortages and price spikes. Analysts now expect this latest round of controls to deepen those disruptions and accelerate Western efforts to diversify supply.

The U.S. and European Union have both increased investment in alternative processing hubs and recycling technologies, but experts caution that developing a stable and competitive rare earth supply chain could take years.

Though presented as a regulatory update, Beijing’s latest move underscores the geopolitical dimension of resource control. As strategic rivalry between the U.S. and China intensifies, rare earths are poised to remain a focal point of both economic and security tensions.

Original reporting by Peter Hoskins for BBC News; Ministry of Commerce of the People’s Republic of China (official statement).