China dramatically expanded its rare earths export controls on Thursday, adding five new elements and extra scrutiny for semiconductor users as Beijing tightens control over the sector ahead of talks between Presidents Donald Trump and Xi Jinping.
The world’s largest rare earths producer also added dozens of pieces of refining technology to its control list and announced rules that will require compliance from foreign rare earth producers who use Chinese materials.
The Ministry of Commerce’s announcements follow U.S. lawmakers’ call on Tuesday for broader bans on the export of chipmaking equipment to China.
They expand controls Beijing announced in April that caused shortages around the world, before a series of deals with Europe and the U.S. eased the supply crunch.
“The White House and relevant agencies are closely assessing any impact from the new rules, which were announced without any notice and imposed in an apparent effort to exert control over the entire world’s technology supply chains,” a White House official told Reuters on Thursday.
The new curbs come ahead of a scheduled face-to-face meeting between Trump and Xi in South Korea at the end of October.
“This helps with increasing leverage for Beijing ahead of the anticipated Trump-Xi summit in (South) Korea later this month,” said Tim Zhang, founder of Singapore-based Edge Research.
China produces over 90% of the world’s processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars.
Exports of 12 of them are now restricted after the ministry added five – holmium, erbium, thulium, europium and ytterbium – along with related materials.
Foreign companies producing some of the rare earths and related magnets on the list will now also need a Chinese export licence if the final product contains or is made with Chinese equipment or material. This applies even if the transaction includes no Chinese companies.
The regulations mimic rules the U.S. has implemented to restrict other countries’ exports of semiconductor-related products to China.
It was not immediately clear how Beijing intends to enforce its new regime, especially as the U.S., the European Union and others race to build alternatives, opens new tab to the Chinese rare earth supply chain.
“We’re likely entering a period of structural bifurcation — with China localizing its value chain and the U.S. and allies accelerating their own,” said Neha Mukherjee, a rare earths analyst with Benchmark Mineral Intelligence.
In a nod to concerns about supply shortages, the ministry said the scope of items in its latest restrictions was limited and “a variety of licensing facilitation measures will be adopted”.
China’s latest restrictions on the five additional elements and processing equipment will take effect on November 8, just before a 90-day trade truce with Washington expires.
The rules on foreign companies that make products using Chinese rare earths equipment or material are to take effect on December 1. Shares in China Northern Rare Earth Group (600111.SS), opens new tab, China Rare Earth Resources and Technology (000831.SZ), opens new tab and Shenghe Resources (600392.SS), opens new tab surged by 10%, 9.97% and 9.4%, respectively, on Thursday.
Shares in U.S.-based rare earths companies jumped as well in New York afternoon trading, with Critical Metals Corp (CRML.O), opens new tab gaining 25%, Energy Fuels (UUUU.A), opens new tab adding 9%, MP Materials (MP.N), opens new tab gaining 2.5% and USA Rare Earth (USAR.O), opens new tab up 15%.
Energy Fuels, which owns a uranium and rare earths processing facility in Utah, said in a statement to Reuters that it is working to boost U.S. rare earths production and that its recent pilot project “showcases the technical capabilities of an American company on American soil.”
NioCorp (NB.O), opens new tab, which is developing a Nebraska rare earths mine, said: “It’s clear that the People’s Liberation Army is increasingly calling the shots on rare earth policy in China. That means even more difficult times both for the Pentagon and for a wide range of commercial manufacturers.”
Source: https://www.reuters.com/world/china/china-tightens-rare-earth-export-controls-2025-10-09/
