China will require export licenses for many rare-earth products and processing tools, potentially tightening global high-tech supply chains.
China's Ministry of Commerce announced Thursday that starting next month exporters will need licenses for dozens of products containing rare earth elements, the specialized tools that process them and artificial diamonds.
The covered items include components and equipment used in lasers, semiconductors, fiber optics and other advanced-technology applications. The measures reach beyond raw ores to processing gear such as cutting and polishing tools, magnets and industrial diamonds commonly used in chip fabrication and optics manufacturing.
By regulating both materials and the machinery that refines them, Beijing is extending oversight over upstream segments of critical mineral supply chains that underpin defense, telecoms and high-end manufacturing. Firms that depend on these inputs may face new compliance requirements, longer lead times and higher costs.
The policy could accelerate efforts by importers to diversify sources, onshore production or seek exemptions, and it may prompt trade and regulatory responses from affected economies. Implementation details, licensing criteria and any carve-outs will determine the scale of disruption to global technology and aerospace supply chains.