China Tightens Rare-Earth Export Controls Targeting Magnets and Chips

Beijing on Thursday tightened export controls on rare-earth processing technology and products, expanding measures first announced in April that disrupted global supplies.

The Ministry of Commerce broadened restrictions to cover more types of rare-earth magnets as well as some components and assemblies that incorporate restricted magnets. Technology and equipment used to recycle rare earths were added to the list of items requiring export licences, alongside existing controls on processing know‑how.

China accounts for more than 90% of the world’s processed rare earths and rare-earth magnets, critical for electric vehicles, aircraft engines, radar and other defense and semiconductor applications. The ministry for the first time spelled out key targets: overseas defence users will be denied licences, while requests tied to advanced semiconductors will be assessed case-by-case.

New rules also bar Chinese companies from collaborating abroad on rare-earth projects without ministry approval, and require foreign manufacturers using Chinese components or machinery to obtain licences. Shipments have resumed after earlier shortages, but some buyers still report difficulty securing licences. The ministry said the latest scope is limited and that it will adopt measures to facilitate licensing. U.S. policymakers are meanwhile pressing for wider chip-equipment export curbs.