China Tightens Controls on Rare Earth Exports

China announced broad new export controls on rare earth elements and related technologies, requiring foreign firms to obtain special approval to export products that contain any traces of rare earths sourced from China, even if those products are manufactured abroad.
The rules expand permitting to technologies used in mining, smelting, recycling and magnet production, and make clear requests for military uses will likely be denied. Rare earths power permanent magnets and components in jet engines, radar, electric vehicles and consumer electronics.
Beijing already dominates the sector, accounting for roughly 70% of mining and about 90% of processing worldwide, making access to these materials a strategic leverage point amid trade tensions with the United States. Enforcement details for overseas activity remain unclear.
Analysts say the move mirrors export controls on advanced chips and will push governments and companies to build independent mine-to-magnet chains outside China. Early responses include planned investments and commercial deals to secure non-Chinese supplies, plus U.S. Defense Department support for domestic production.
The measures are likely to accelerate diversification, recycling and upstream processing investments, reshape supply chains for high-tech and defense manufacturers, and figure prominently in upcoming high-level negotiations between Washington and Beijing.