China’s Ministry of Commerce has introduced new restrictions on the export of rare earth materials and related technologies. In Beijing, this step was explained by the need to protect national security and prevent the use of Chinese developments for military purposes, reports Financial Times.
Under the new rules, foreign companies must obtain permission from the Chinese government to export any products containing even minimal traces of rare earths of Chinese origin. Such a permit will also be required in cases where the products are manufactured using Chinese technologies for mining, beneficiation or manufacturing of magnets.
In addition, China is introducing an extraterritorial export control model for the first time, which is actually an analogue of the American foreign direct product rule. Its purpose is to extend jurisdiction over materials and technologies of Chinese origin used abroad.
The department emphasized that there were recorded cases when foreign companies transferred materials and technologies for military use, harming China’s security. The new regime should prevent such “misuse”.
Such restrictions give Beijing an additional tool to influence global supply chains of rare earth materials. Against the background of Western efforts to diversify the sources of critical minerals, China is tightening control over their circulation and technologies.
In 2026, China plans to introduce mandatory export licenses for the sale of electric vehicles abroad. The Ministry of Commerce explained this step by the need to strengthen sales supervision and limit the activities of uncontrolled exporters in order to protect the global reputation of Chinese automobile brands.
