The Chinese Commerce Ministry (MOFCOM), as reported by Global Times, announced on Oct. 9 that in order to safeguard national security and interests, it is imposing export controls on rare earth-related technologies. That is to include “rare earth mining, smelting and separation, magnetic material manufacturing, and rare earth secondary resource recycling.” Companies will still be able to apply for exemptions for specific cases. Otherwise, MOFCOM will also require exporters to apply for dual-use item export licenses for items not included above, if the exporters know their product will be used for activities related to the above-listed categories.
The previous attempt by U.S. President Donald Trump to wage a tariff war with China was ill-fated, largely due to China’s overwhelming dominance of the mining and processing of rare earth minerals. Of the 390,000 metric tons of rare-earth oxides mined in 2024, China mined about 270,000 metric tons (compared to 45,000 metric tons mined by the U.S.). And China has about 85% of the refining capacity. Today’s move by China will undoubtedly be heard by Washington, as the two Presidents, Donald Trump and Xi Jinping, are to meet later this month.
