China tightens rare earth export curbs, taking aim at military and chip applications

By John Liu, CNN

(CNN) — Beijing imposed new restrictions on rare earth exports on Thursday, targeting critical minerals production technologies and their overseas use, including for military and semiconductor applications.

China dominates the global processing of rare earths – essential in everything from everyday electronics to fighter jets. The latest move came as Beijing engaged in trade talks with the United States and ahead of an expected meeting between Chinese leader Xi Jinping and President Donald Trump on the sidelines of the APEC summit in South Korea later this month.

Under the new rules, licenses will be required for the export of technologies used in rare earth mining, smelting and processing, as well as for magnets manufacturing. Foreign firms seeking to supply rare earths produced in China or processed with Chinese technologies will also need to obtain a license, according to the country’s Ministry of Commerce.

The restrictions aim to “safeguard national security and interests” by preventing the materials from “being used, directly or indirectly, in military and other sensitive fields,” the ministry said.

The commerce ministry will reject license applications for military use as well as defense companies and associated entities “in principle,” it said.

Export license applications involving the use of rare earths in the developing and making of advanced computing and memory chips, as well as artificial intelligence with potential military applications, will be reviewed on a case-by-case basis, the ministry said.

Chinese nationals and companies are prohibited from assisting rare earth mining, processing and magnets manufacturing outside China without government approval.

Most of the restrictions went into effect immediately on Thursday.

China-US relations have shown tentative signs of improving in recent months, though tensions remain. Last week, Washington expanded restrictions on certain Chinese tech companies to also cover their subsidiaries, drawing ire from Beijing.

Rare earths emerged as a key source of friction between the world’s two largest economies in April, when Beijing placed export controls on seven types of rare earth minerals in response to Trump’s “reciprocal tariffs” on Chinese goods. The move swiftly disrupted global supply chains, rattling industries from automobiles to defense.

Only in June did China and the US formalize a deal on rare earth shipments, slowly easing the shortages of the critical elements, though some industries are still grappling with the fallout.

In a Thursday statement, a commerce ministry spokesperson said the authorities have found that some foreign organizations and individuals had transferred or supplied Chinese rare earth items or technologies, with some materials being used in military or other sensitive fields.

“These actions have caused significant harm or potential threats to China’s national security and interests, undermined international peace and stability, and hindered global non-proliferation efforts,” the spokesperson said.

The-CNN-Wire
™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.