China will impose export controls on a range of rare earth technologies, covering mining, smelting and the recycling of secondary resources, the Ministry of Commerce (MOFCOM) announced. Foreign organizations and individuals must obtain a dual-use item export license from the Ministry before shipping controlled items to destinations outside China. Effective immediately, the government has banned the unauthorized export of technologies, data and know-how, from mining and smelting to magnet production and recycling, including all technical services for production line assembly, maintenance and upgrading. Rare earth-related items possess dual-use attributes, and the implementation of export controls is an internationally common practice, said a Ministry Spokesperson.
MOFCOM and the General Administration of Customs (GAC) issued four consecutive announcements, implementing export controls on items related to super-hard materials, some rare earth equipment, and raw and auxiliary materials, some medium and heavy rare earth items, and items related to lithium batteries and artificial graphite negative electrode materials. Rare earths consist of 17 elements that are widely used in high-tech products ranging from smartphones and flat-screen televisions to wind turbines and fighter jets. In April, China imposed export controls on these items for domestic organizations and individuals. However, some overseas entities and individuals have directly or indirectly transferred or supplied controlled items of Chinese origin – either in their original form or after processing – to relevant parties. These actions have led to the direct or indirect use of such items in sensitive fields like the military, causing significant harm or posing potential threats to China’s national security and interests, the Ministry official said.
The rules specify that export applications for end-uses involving the “research, development or production of logic chips at 14 nanometers or below, or storage chips with 256 layers or more”, as well as for the manufacturing, testing equipment and materials for such advanced chips, will be subject to case-by-case approval. The same rigorous, case-by-case approval will apply to exports intended for the research and development (R&D) of artificial intelligence (AI) with potential military applications.
In the first eight months of 2025, China’s cumulative rare earth exports reached 44,355 metric tons, up 14.5% year-on-year. The increase in exports indicates that global demand for Chinese rare earths remains persistently strong, the China Daily reports.
The South China Morning Post adds that even before the latest measures were announced, European businesses have been complaining about the slow pace of license approval. The EU Chamber of Commerce said that by September 9, only 19 of 141 applications for rare earth export licenses had been approved, with some 121 in process. This had led to seven instances of halted production in August, with 46 expected in September. “Unfortunately, we have seen not much progress since the China-EU summit, so we need to start working with our Chinese friends to start making progress. And as you can see, the news does not seem to be very good for the moment,” EU Ambassador to China Toledo said. China’s latest export controls on rare earths are expected to have a direct impact on the global semiconductor supply chain, complicating the production of AI and memory chips from major U.S. and South Korean suppliers, according to analysts.
The State Administration for Market Regulation (SAMR) also announced an investigation into U.S. chipmaker Qualcomm over its alleged failure to file a mandatory antitrust notification related to its acquisition of Israeli semiconductor firm Autotalks in June. Chinese authorities also announced separate export controls on lithium battery and graphite anode materials, which are key components in EVs, as another step in China’s broader effort to protect its strategic technologies.
