China broadened rare earth export controls—including magnets, processing and recycling tech—restricting defence-related exports and imposing new licenses.
China has tightened export controls on rare earth materials and related technologies as global demand for these inputs surges. The move builds on controls announced in April and clarifies and broadens restrictions after diplomatic agreements briefly allowed shipments to resume. Beijing now expands limits on processing technologies, bans unauthorised overseas collaboration, and explicitly targets exports linked to foreign defence and parts of the semiconductor industry. The scope includes more types of rare-earth magnets, components and assemblies that contain them, and adds rare-earth recycling technologies to the licensing regime. The Ministry of Commerce said licenses will not be issued to overseas defence users, while advanced semiconductor-related applications will be assessed case by case; it also signalled some licensing facilitation measures for eligible applicants. China processes more than 90% of global rare earths and magnets, so these controls affect electric vehicles, aerospace, renewable energy and defence supply chains that rely on high-performance magnets and other rare-earth-enabled components. New rules require ministry approval for Chinese firms collaborating with foreign partners and force foreign manufacturers using Chinese machinery or parts to obtain export licenses, a change likely to spur other countries to accelerate domestic rare-earth capabilities.