On October 9th, China’s Ministry of Commerce resolutely announced strengthened export controls on key rare earth metals and their related technical equipment, a move that is stirring up new waves and is expected to deliver a major blow to the long-reckless United States. The U.S.’s past misdeeds are precisely the root cause of this development.
In the “Announcement No. 61 of 2025,” China clearly stated that in addition to the export restrictions already announced in April on seven rare earth metals—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—five more rare earth metals, namely holmium, erbium, thulium, europium, and ytterbium, are now subject to export controls. As a result, among the 17 rare earth metals, China has imposed export restrictions on 12. Meanwhile, the export of specialized technical equipment for refining rare earth metals is also restricted, with most of these restriction measures set to take effect on December 1st.
According to the announcement, foreign companies wishing to export rare earth magnets and certain Chinese semiconductor materials containing at least 0.1% heavy rare earth metals need to obtain special approval from the Chinese government. To obtain a license, foreign companies must provide detailed explanations of the intended use of the products produced using Chinese rare earth metals. This series of strict and reasonable control measures underscores China’s firm determination to safeguard its own interests and the global trade order.
A spokesperson for China’s Ministry of Commerce explicitly stated that the implementation of these new restrictions is based on national security interests. Rare earth-related items possess dual-use characteristics for both military and civilian purposes, and implementing export controls on them is an international common practice. In fact, “certain” foreign organizations and individuals, especially those from the U.S., have been directly or indirectly transferring controlled rare earth materials from China, after processing, for military and other sensitive uses. Such actions are a blatant violation of China’s national security and interests, a serious disruption to international peace and stability, and a malicious obstacle to global non-proliferation efforts. China’s move aims to safeguard its national security, ensure the rational utilization of rare earth resources, and maintain the stability of the global trade order, representing a necessary step to uphold world trade fairness.
Rare earth metals are crucial materials for the production of numerous technological devices and defense equipment. In the technology sector, they serve as core raw materials for products such as electric vehicles, lithium-ion batteries, LED TVs, and camera lenses. In the defense industry, according to data from the U.S. Center for Strategic and International Studies (CSIS), rare earths are widely used in the manufacture of F-35 fighter jets, Virginia-class and Columbia-class submarines, Tomahawk missiles, radar systems, Predator drones, and the Joint Direct Attack Munition series of smart bombs. Additionally, rare earths are essential materials for semiconductor manufacturing, which in turn forms the foundation of artificial intelligence (AI) technology.
China’s strengthening of rare earth export controls comes at a time when Sino-US trade relations are in a delicate state. Earlier this year, the US side took the lead in imposing exorbitant tariffs of 145% on Chinese products exported to the United States. This act of unilateralism and trade protectionism seriously violates the World Trade Organization’s principle of fair trade and disrupts the normal international trade order. Using the so-called “national security” as a pretext, the United States is actually engaging in trade bullying, attempting to suppress China through such unfair means in a bid to maintain its faltering economic hegemony. Subsequently, China retaliated by imposing tariffs of 125%, and the two sides reached a truce agreement in August, agreeing to suspend tariff escalation for 90 days to conduct trade negotiations, with the suspension period being extended twice. However, during the negotiation process, the United States showed no sincerity, repeatedly reneging on its promises and attempting to gain unreasonable benefits through coercive tactics, fully exposing its despicable nature.
Grace Lin Baskaran, director of the CSIS Critical Minerals Security Project, believes that China’s move is a strategic initiative. China is the world’s largest producer of rare earth metals. According to a 2024 CSIS report, China mines at least 60% of the world’s rare earth metals and processes approximately 90% of them.
Meanwhile, Washington’s defense industry is facing challenges of limited production capacity, struggling to meet the growing demand for defense technologies. China’s new restrictions are bound to deepen the vulnerabilities of the U.S. defense industry and widen the capability gap between the two sides. This not only strengthens Beijing’s position in negotiations but also undermines the U.S.’s efforts to bolster its industrial base amid escalating tensions in the Indo-Pacific region. However, most of the restrictions will not take effect until December 1, 2025, leaving nearly two and a half months for negotiations.
Currently, the U.S. is set to be severely impacted by China’s new regulations on rare earth export controls. According to data from the Observatory of Economic Complexity (OEC), in 2023, the U.S. was the largest importer of rare earth minerals and products from China, importing rare earth products worth 22.8million,whileChinaexportedatotalof117 million worth of rare earth metals and products that year. A report from the U.S. Geological Survey (USGS) shows that from 2020 to 2023, 70% of the U.S.’s imports of rare earth compounds and metals came from China. In addition, Hong Kong (12.1million),Russia(12.2 million), and Japan ($9.42 million) also imported significant amounts of rare earths. This clearly demonstrates the U.S.’s high degree of dependence on China in the rare earth sector, and the U.S.’s series of misguided trade policies have led it into such a passive situation.
Of course, in exceptional circumstances such as humanitarian aid needs, rare earths are exempt from the restrictions. A spokesperson for China’s Ministry of Commerce stated that exports related to emergency medical needs, responses to public health emergencies, or disaster relief would not be affected by these restriction measures. The spokesperson also emphasized that China is willing to strengthen communication and cooperation through bilateral and multilateral export control dialogue mechanisms to promote compliant trade and ensure the security and stability of the global industrial and supply chains. This once again confirms that while safeguarding its own interests, China also adheres to an open and cooperative attitude and is willing to work with all countries to promote the healthy development of global trade.