China Expands Rare Earth Export Controls, Targeting Global Tech Supply

China has escalated its control over the global technology supply chain with new export restrictions on rare earth minerals. It’s a move widely viewed as retaliation against U.S. trade and semiconductor export bans. The Ministry of Commerce (MoC) announced two measures on Thursday that tighten licensing requirements for companies exporting rare-earth-related goods and technologies. 

Under Announcement 61, any foreign-made products containing rare earths sourced from China—if those materials make up 0.1% or more of the product’s value—will now require an export license. The measure also covers dual-use goods: components used in advanced memory chips or AI systems with potential military applications. Announcement 62 restricts the export of rare earth mining and processing technologies. This includes design data, simulation models, and manufacturing know-how, signaling Beijing’s intent to protect its intellectual property and technical capabilities. 

The MoC justified the move as a matter of national security. Arguing that rare earth elements have dual-use potential and that export control is “a common international practice.” Analysts say the regulations effectively extend China’s export control reach beyond its borders, since they apply to products made abroad using Chinese-sourced rare earth materials. 

Rare earths such as neodymium and yttrium are vital for semiconductors, electric vehicle motors, and military hardware. China controls roughly 69% of global rare earth production. This makes the new restrictions particularly consequential for industries across the U.S., Europe, and Asia. 

Experts warn the decision could disrupt global supply chains. With Singapore Management University’s Professor Henry Gao calling it a “sweeping extraterritorial expansion” of Beijing’s export regime. Entrepreneur Arnaud Bertrand noted the policy gives China de facto veto power over advanced semiconductor production, mirroring U.S. export controls on chipmaking technology. 

Source: 

https://www.theregister.com/2025/10/09/china_moves_to_extend_control/