Beijing Tightens Rules on Rare Earth Exports and Technology Licenses
Beijing has introduced new export rules that tighten control over rare earth technologies. These rules, announced on Thursday, require companies to obtain licenses before exporting materials or technology related to rare earth mining and processing.In addition, the regulations apply to the manufacturing of magnets, which are widely used in advanced and military technologies. The new system aims to protect China’s strategic resources while ensuring oversight of how its technologies are used globally.
Foreign Firms Face New Licensing Hurdles
Foreign companies now face stricter requirements when dealing with Chinese rare earths. Any firm that wants to export rare earths produced in China, or processed using Chinese technologies abroad, must first secure a license from China’s Ministry of Commerce.
This step marks a major shift in global trade policy. It signals that China intends to maintain firm control over materials critical to high-tech industries. As a result, many international manufacturers could experience delays or higher costs when sourcing key components.
Experts believe these restrictions send a powerful message to the world. China already controls over 90% of global rare earth processing capacity. Therefore, any regulatory changes in Beijing can have ripple effects across industries that depend on advanced materials — from smartphones to renewable energy systems.
