Chinese authorities expanded their grip on global rare earth supply chains Friday, imposing new restrictions that for the first time include oversight of minerals imported for processing alongside domestic production.
The measures from China’s Ministry of Industry and Information Technology establish mandatory quotas and licensing requirements for companies handling these critical materials used in everything from smartphones and wind turbines to advanced military hardware.
Companies must now submit detailed monthly reports on rare earth product flows through a government-controlled information system, with data due by the 10th of each month.
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The expanded controls build upon export licensing requirements Beijing introduced in April for seven rare earth elements, including samarium and gadolinium used in high-performance magnets and defense applications.
Beijing controls approximately 90% of global rare earth processing while accounting for roughly 70% of mining operations worldwide. China also holds nearly half of all known reserves of these elements.
The restrictions have heightened concerns about supply disruptions for industries dependent on these critical minerals. American industry relies heavily on Chinese supply chains, with China providing seven out of every ten rare earth elements used in the United States during 2024, according to US Geological Survey data.
Related: G7 Rolls Out Critical Minerals Playbook as China’s Grip Tightens
The measures are China’s latest response to escalating trade tensions with Washington. In December 2024, China banned exports of four minerals critical to semiconductor production after the US imposed new restrictions on Chinese companies.
These elements serve as essential components in permanent magnets powering everything from consumer electronics and renewable energy systems to sophisticated weapons platforms and missile guidance technology.
The Pentagon has committed over $400 million since 2020 toward building domestic rare earth supply chains to meet all US defense needs by 2027. However, current American production remains minimal compared to Chinese output.
Related: DOE Announces Nearly $1 Billion for Critical Minerals Supply Chain
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