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China sharply expanded its rare earth export restrictions on Oct. 9, adding additional elements and refining technologies to its control list while imposing stricter rules on foreign users in the defense and semiconductor industries.
According to Reuters, the Ministry of Commerce announced the measures without prior notice, extending export controls to five additional rare earths and dozens of magnet-making technologies. The move also introduces new compliance requirements for foreign companies that use Chinese materials, tightening Beijing’s hold on critical technology supply chains ahead of an expected meeting between Presidents Donald Trump and Xi Jinping in South Korea later this month.
“The White House and relevant agencies are closely assessing any impact from the new rules,” a U.S. official told Reuters, describing the curbs as an attempt by Beijing to “exert control over the entire world’s technology supply chains.”
A CSIS analysis shows these measures are China’s toughest export rules, mirroring the U.S. policy by controlling foreign goods with Chinese content. Starting Dec. 1, 2025, the government will largely deny export licenses for companies linked to foreign militaries, including U.S. defense contractors.
CSIS also noted that the restrictions could severely disrupt production of advanced systems such as F-35 jets, radar systems, and precision-guided munitions. Export license reviews for sub-14 mm semiconductor tools and next-generation chips will now occur on a case-by-case basis, giving Chinese authorities greater power to delay or deny shipments.
China, which accounts for about 70% of rare earth mining and up to 90% of processing, has long used its dominance as economic leverage. Analysts say the timing suggests Beijing is using the controls to strengthen its negotiating position ahead of renewed U.S.-China trade talks.
