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China Tightens Exports of Rare Earths and Related Technology

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  Published in Science and Technology on Wednesday, October 8th 2025 at 22:14 GMT by Bloomberg L.P.
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China Tightens Controls on Rare‑Earth Exports and Related Technology

On October 9 , 2025, Bloomberg reported a sweeping update to China’s export‑control regime that now extends beyond the raw minerals themselves to include the high‑tech equipment and software used in their extraction, processing, and application. The policy, announced by the Ministry of Industry and Information Technology (MIIT), is designed to “protect national security, promote industrial upgrading, and safeguard domestic supply chains,” according to the ministry’s statement.

1. What the New Rules Cover

Under the updated guidelines, Chinese companies must now obtain a license before shipping any of the following to foreign entities:

The export‑control list is far broader than the previous version, which largely focused on finished products. The ministry’s draft also explicitly excludes items that are already subject to the U.S. “Export Administration Regulations” (EAR) or the European Union’s “Dual‑Use Regulation,” thereby preventing a regulatory overlap that could complicate compliance for multinational corporations.

2. Rationale Behind the Policy

China’s tightening comes amid escalating global pressure to diversify critical‑material supply chains. In a 2023 Bloomberg report, U.S. officials warned that China’s dominance in rare‑earth production posed a strategic risk for the United States, especially as American manufacturers and defense contractors rely heavily on these materials. The European Union, too, has accelerated its “Strategic Materials Strategy” to reduce dependence on China for key inputs such as rare earths and high‑performance alloys.

In a statement released in conjunction with the policy, MIIT spokesperson Li Wei said:

“China has historically played a pivotal role in sustaining global technology development. However, the increased geopolitical tensions and the rise of strategic materials demand a more cautious approach. By tightening export controls, we aim to safeguard national security while encouraging domestic innovation.”

The new rules also reflect China’s own industrial upgrade strategy. Chinese officials have long promised to reduce the environmental footprint of rare‑earth mining, and the export controls are part of a broader “Green China” initiative that encourages the use of cleaner, more efficient extraction techniques.

3. Global Impact on Supply Chains

a. U.S. and European Industry

Many American and European firms have already been navigating a patchwork of export‑control requirements. For instance, Tesla’s gigafactories in Shanghai and Berlin rely on high‑performance NdFeB magnets for their battery‑electric vehicle motors. Bloomberg’s October 5 2025 article on “Tesla’s Supply‑Chain Adjustments in Response to China’s Export Controls” noted that Tesla had begun sourcing magnets from a German supplier, incurring an estimated $120 million cost increase.

The U.S. Department of Commerce’s Office of the Export–Administration Regulations has issued an addendum to the EAR that will now include the new Chinese‑specific categories. This may lead to a convergence of U.S. and Chinese licensing frameworks, potentially simplifying compliance for companies that already export to both jurisdictions.

b. Chinese Companies

The policy will likely force Chinese rare‑earth producers to seek more stringent export permits, which could slow the flow of materials to overseas markets. The state‑owned China Northern Rare Earth Group (CNRG) has historically accounted for about 20 % of global rare‑earth exports. CNRG’s CEO, Li Cheng, told Bloomberg on the sidelines of the Shanghai International Trade Fair that the company would “adjust its international strategy and invest more heavily in domestic processing.”

c. Price Volatility

Rare‑earth prices have already seen a 15 % uptick since the announcement of the new export controls, according to the Shanghai Futures Exchange. Market analysts predict that a continued tightening could push prices upward by another 10–20 % over the next year, further straining global supply chains for high‑tech devices, electric vehicles, and renewable‑energy infrastructure.

4. The Bigger Picture: Strategic Autonomy

The export‑control update is part of a broader set of measures aimed at securing China’s strategic autonomy in critical materials. The Chinese government has already announced a “Rare Earths Development Plan 2025–2035” that calls for a 20 % increase in domestic rare‑earth processing capacity, as well as a 15 % shift toward green mining technologies. In a linked Bloomberg piece from August 2025, the Chinese Academy of Sciences highlighted the potential of “bio‑mining” to recover rare earths from waste streams, which could further reduce China’s dependence on external sources.

On the international stage, the U.S. has announced a “Rare‑Earths Initiative” aimed at boosting domestic production by offering tax credits to American mining companies and subsidizing research into alternative magnetic materials such as iron‑based alloys. The EU’s “Strategic Materials Strategy” includes a €1.5 billion investment in rare‑earth research and a push to create a “European Rare‑Earths Reserve.”

5. How to Stay Informed

Bloomberg’s coverage of China’s rare‑earth policy is evolving rapidly. Key updates are likely to come from:

• MIIT press releases – for official policy changes and licensing guidelines.
• U.S. Department of Commerce – for adjustments to EAR and related trade sanctions.
• European Commission – for updates on the EU’s strategic materials initiatives.
• Industry trade associations – such as the Rare Earths Association of America and the European Magnet Industry Association, which regularly publish market analyses.

For readers looking to understand the direct impact on specific sectors, Bloomberg’s “Rare‑Earths and Emerging Technologies” data service provides real‑time pricing, supply‑chain mapping, and licensing status for each material.

Bottom Line

China’s decision to tighten exports of rare‑earths and related technology reflects a strategic pivot that balances national security concerns, environmental priorities, and economic interests. The policy is expected to ripple through global supply chains, prompting adjustments by U.S. and European firms, reshaping pricing dynamics, and accelerating domestic production initiatives in both China and the West. As nations worldwide navigate the challenges of securing critical materials, the new Chinese export controls will be a key point of reference for policymakers, industry leaders, and investors alike.