China strengthens export controls on rare-earth metals: Discover the impact
China has announced new export controls on critical rare-earth metals, intensifying previous restrictions. These changes were revealed by the Ministry of Commerce and are set to take effect on December 1, 2025. This policy shift comes ahead of a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
Details of the Export Controls
In its latest announcement, referred to as “announcement number 61 of 2025”, China extended its export restrictions to include five additional rare-earth metals:
- Holmium
- Erbium
- Thulium
- Europium
- Ytterbium
This adds to the seven metals previously restricted, which are:
- Samarium
- Gadolinium
- Terbium
- Dysprosium
- Lutetium
- Scandium
- Yttrium
In total, China has now placed export controls on twelve of the seventeen rare-earth metals, which are essential for various technologies and industries.
Rationale Behind China’s Decision
China’s Commerce Ministry cited national security as the primary reason for these restrictions. The ministry noted that rare-earth materials have dual-use capabilities that can serve both civilian and military applications. There is growing concern over the potential transfer of these materials to foreign military entities, which China believes could compromise its national interests.
The Importance of Rare-Earth Metals
Rare-earth elements are integral in manufacturing crucial technological components. They are used in products such as:
- Electric vehicles
- Smartphones
- LED televisions
- Military technologies including F-35 fighter jets and missile systems
Analysts assert that the new restrictions grant China significant leverage in ongoing U.S.-China trade negotiations. The U.S. relies heavily on Chinese rare-earth metals, importing around $22.8 million worth in 2023 alone. In fact, from 2020 to 2023, about 70% of U.S. imports of these critical minerals came from China.
Impact on Global Supply Chains
The implications of these restrictions extend beyond military needs to civilian technology as well. The U.S. defense sector, already facing production hurdles, may find it increasingly difficult to secure necessary materials for advanced technology. The potential disruptions to supply chains could have far-reaching effects on industries reliant on rare-earth metals.
International Response and Exemptions
Some analysts emphasize that while these export controls significantly affect the U.S., other countries like Hong Kong, Russia, and Japan also depend on Chinese rare-earth imports. However, the Commerce Ministry has stated that exports related to emergency medical needs will be exempt from these new restrictions.
Overall, the tightening of export controls on rare-earth metals by China signals a strategic maneuver to reinforce its negotiating position ahead of critical discussions with the United States.
