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China Places New Restrictions on Rare Earth Technology Exports

Beijing: China on Thursday announced a new set of regulations imposing 'controlled measures' on rare earth-related exports, specifically targeting processing and manufacturing technologies. The regulations prohibit collaboration with foreign companies without prior government authorization, as reported by state media.

According to Anadolu Agency, the Commerce Ministry stated that these measures are designed to protect national security and interests by enforcing export controls on rare earth-related technologies. The sectors affected include mining, smelting and separation, magnetic material production, and recycling of secondary resources.

The ministry outlined that technologies and related data involving the entire rare earth supply chain, from mining to recycling, cannot be exported without official permission. This move is part of a broader strategy following controls introduced by Beijing in April, which initially caused global shortages until new agreements with Europe and the US reestablished shipments.

Under the newly implemented rules, foreign organizations and individuals must secure licenses from the Commerce Ministry before exporting certain products, such as rare earth permanent magnets and target materials manufactured abroad, if they contain Chinese rare earth metals or oxides. These Chinese materials must constitute at least 0.1% of the item's total value for the rules to apply.

Additionally, the ministry has restricted Chinese firms from engaging with overseas companies on rare earth projects without prior authorization. The regulations further stipulate that for non-controlled goods, exporters must obtain a dual-use item export license if they know these goods will significantly contribute to overseas activities involving the rare earth supply chain.

The unauthorized provision of rare earth-related items is strictly prohibited, reiterating the ministry's commitment to strict regulatory enforcement. China remains the dominant player in the global rare earth market, producing over 90% of the world's processed rare earths and magnets, which are essential for a variety of high-tech products, including electric vehicles, aircraft engines, and military radars.