China Expands Rare-Earth Controls, Threatening Medical Supply Chains

China has announced expanded export controls on 12 rare-earth elements, tightening limits on seven-including gadolinium, dysprosium and yttrium-and adding five new metals such as holmium, thulium and europium.
The policy follows U.S. restrictions on advanced chipmaking equipment and reflects concerns about dual-use technology. Several of the newly restricted elements are essential to medical-device technologies: high-strength magnets and alloys in MRI systems, phosphors and components in X-ray imaging, and precision optical materials for laser surgical instruments. Many are also critical to semiconductor manufacturing that underpins a broad range of chip-enabled medical devices.
China produces more than half of global rare-earth ore and handles nearly all refinement, creating a concentration risk. Elemental substitutes are limited and developing new extraction and refining capacity outside China would require years and substantial investment. Market analysis indicates over $9 billion of medical devices relied on these metals in 2024, with forecasts above $15 billion by 2036.
Manufacturers face heightened uncertainty: tighter export controls could slow market growth, cause localized shortages, and disrupt production of MRI, X-ray and other advanced medical equipment unless alternative supplies, recycling or domestic refining scale up rapidly.