On October 9, 2025, China announced a new wave of sweeping controls on its rare earth exports, a move that’s already rippling through global markets and intensifying the ongoing technology rivalry with the United States. The new regulations, which will take effect December 1, require foreign companies to obtain approval from Chinese authorities before exporting any products containing even trace amounts of Chinese-sourced rare earth materials or that were produced using Chinese extraction, refining, or magnet-making technologies. These controls also extend to the export of related technologies, expertise, and even software or technical documents used in the mining, processing, and recycling of rare earths.
According to Reuters, the announcement from China’s Ministry of Commerce broadens the scope of previous restrictions and explicitly aims to restrict exports to foreign defense and semiconductor industries. The ministry stated that the new rules are intended to “protect its national security and interests” and to prevent the “misuse of rare-earth materials in military and other sensitive sectors.” Applications involving advanced computing, memory chips, or artificial intelligence with potential military uses will now be evaluated on a case-by-case basis, adding an extra layer of scrutiny for industries already concerned about supply chain vulnerabilities.
China’s move comes at a particularly tense moment, just ahead of an expected meeting between Chinese leader Xi Jinping and U.S. President Donald Trump at the APEC summit in South Korea later this month. For many observers, the timing is no coincidence. As Benzinga noted, the new export controls “escalate tensions with Washington” and serve as a clear signal that Beijing is prepared to leverage its dominance in rare earths as a strategic bargaining chip in the ongoing trade and technology disputes.
Rare earth elements—a group of 17 chemically similar metallic elements, including the lanthanides plus scandium and yttrium—are indispensable in a vast array of modern technologies. They’re critical for everything from smartphones and electric vehicles to wind turbines, advanced military radars, and semiconductors. China controls about 70% of global rare-earth mining, 90% of separation and processing, and a staggering 93% of magnet manufacturing, according to a Financial Times analysis cited by Benzinga. This dominance gives Beijing enormous leverage over industries and governments worldwide.
The new rules make it clear that not only the raw materials, but also the know-how and technology behind rare earth extraction and processing, are now tightly controlled. The German Press Agency reported that the export of technologies and expertise for mining, processing, and producing rare earth magnets is prohibited without specific authorization. Even software, technical plans, and maintenance documents now fall under the new rules. For the first time, products manufactured outside China that contain Chinese rare earths or that were made using Chinese processes are also subject to these controls. Companies exporting such goods to other countries must apply for approval from Chinese authorities.
Beijing’s stance is especially strict regarding military applications. Exports intended for military purposes or destined for foreign armies will generally not be approved, according to the Chinese government. This has significant implications for defense industries in the U.S., Europe, and beyond, which rely heavily on rare earths for advanced weapon systems and radars.
For global manufacturers, the implications are immediate and far-reaching. Tech giants like Nvidia, Apple, and Tesla, which depend on rare earths for producing advanced chips, electric motors, and batteries, are bracing for potential disruptions. As Invezz highlighted, the expanded controls now encompass more types of magnets and related components, and even require export licenses for rare earth recycling technology. Chinese companies collaborating with overseas firms on rare earth projects must now obtain ministry permission, while foreign manufacturers using Chinese components or machinery are mandated to secure export licenses for the export of controlled goods.
The new regulations are not just about technology, though. They’re also about power. As TradingView explained, China’s dominant position in the rare earth market is rooted in a combination of abundant natural resources and advanced processing capabilities. By tightening export controls, Beijing is signaling that it’s willing to use this dominance as leverage in broader geopolitical and economic struggles, particularly with the U.S. and its allies.
Unsurprisingly, the announcement has caused anxiety among European and German companies. In September, the European Chamber of Commerce in China warned of further production losses among its member companies due to Beijing’s export controls. Although China has issued more export licenses in recent months, leading to a steady increase in shipments, some users report ongoing difficulties obtaining these crucial materials. To address such concerns, the Ministry of Commerce stated that the latest restrictions cover a limited range of items and promised that “a variety of licensing facilitation measures will be adopted.”
The U.S., meanwhile, is not standing still. According to Benzinga, Washington has been working to secure its rare earth supply chain and explore alternatives. Earlier this month, Pakistan shipped its first batch of enriched rare earth elements and critical minerals to the U.S., marking the beginning of a $500 million partnership. The U.S. government has also taken direct equity stakes in major miners such as MP Materials Corp, and investors are eyeing rare earth and strategic metals exchange-traded funds as a way to benefit from the anticipated boom in domestic production efforts.
The stakes are high for industries far beyond technology. In the automotive and energy sectors, rare earths are vital for producing magnets used in electric motors and manufacturing batteries. Export constraints may push component prices higher and delay vehicle rollouts as well as renewable energy projects like wind turbines. For national security, the prohibitions on exports for military use underscore China’s concerns about these materials being deployed in technological and military competition—especially in artificial intelligence and advanced weapon systems.
China’s tightening of rare earth export rules is more than just a trade policy—it’s a strategic move in the global contest for technological and economic supremacy. Companies and governments worldwide now face the daunting task of diversifying their supply chains and developing alternative technologies to reduce their dependency on China. But as experts point out, building independence from China’s monopoly will take time and substantial investment, posing short-term risks to the stability of global supply chains and the future of high-tech industries.
With the new regulations set to take effect on December 1, the world will be watching closely as the rare earth chess match between China and the West enters a new, more complex phase.