For more than a year, China has been creating an elaborate set of rules to protect its exports of minerals that the rest of the world cannot live without. These obscurely named minerals, most of them called rare earth metals, are vital to the manufacture of a vast array of military and civilian goods, from fighter jets to semiconductors and cars.
Export controls gave Beijing enormous leverage because China is the dominant supplier. The country is the only producer, for example, of samarium, a rare earth metal used in many military applications.
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China is also the only country to master the difficult art of refining ultrapure dysprosium: the entire world supply needed for super-fast chips comes from a single factory near Shanghai.
Perhaps most important: China makes 90% of the world’s rare earth magnets, used in electronics and electric motors. It is the only producer of some types of small magnets used in cars.
Beijing first invoked the new rules late last year. Authorities suspended shipments to the United States of four metallic elements, but not yet rare earths, in retaliation after Washington imposed strict limits on the export of the highest-performance semiconductors to China.
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Since then, China has used export controls to increasingly tighten access to its rare earths.
These controls have become a key point of contention with the US government. They are expected to be discussed on Thursday the 30th, when President Donald Trump will meet with Xi Jinping, the leader of China.
Senior U.S. policymakers expressed hope after Sunday’s trade talks that China could delay enforcing its new rules. China risks long-term damage to its own economy from the regulations, damaging the country’s image as a reliable supplier.
Here’s how China built its regulatory embargo around critical minerals.
Chronology of China’s export controls
October 1, 2024
The starting gun: Detailed documentation requirements
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China begins requiring exporters of rare earth metals to obtain detailed information from all overseas customers about exactly how the metals will be used in their supply chains.
Outcome: The rule gives the Ministry of Commerce a comprehensive roadmap of the types and quantities of rare earths that companies around the world need.
December 3, 2024
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Restrictions on four non-rare earth minerals
China stops exports to the United States of four metal elements that are not rare earths but are still badly needed. The Ministry of Commerce restricts any additional shipments of gallium or germanium, needed to manufacture some types of semiconductors, and shipments of antimony or tungsten, used in ammunition and other military applications.
Result: For the first time, China not only limits exports directly to the United States, but also prohibits companies in other countries from transferring materials to US companies.
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April 4, 2025
Export controls on some rare earth metals and magnets
China imposes export controls on seven of the 17 rare earth elements as well as magnets made with them, halting shipments to all countries, not just the United States. In the following two months, the Ministry of Commerce approved very few export licenses. Automakers and their suppliers in the United States, Europe and Japan are running out of inventories and, in some cases, delaying production. The pace of permit issuance accelerates during the summer, but many overseas factories still face severe shortages.
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Result: More than six months later, exports remain halted for a rare earth element, samarium, which is vital for military magnets. For six other items and magnets, China grants six-month licenses. Many of these licenses will need to be renewed soon.
October 9, 2025
Stopping the transfer of rare earth technical secrets
In one of several actions that day, China’s Ministry of Commerce orders an immediate halt, except with its approval, to any transfer out of the country of technology or information needed for nearly the entire rare earth process — from mining to recycling. To restrict other countries’ efforts to develop their own rare earths sectors, the order prohibits a wide range of activities, from licensing Chinese intellectual property to hiring personnel from China.
Result: China widely employs export controls to try to safeguard its almost complete dominance over industry.
October 9, 2025
Disruption of exports of rare earth processing equipment.
The Ministry of Commerce also issues a long list of furnaces, chemicals and other equipment and materials that are essential for rare earth processing, saying none are allowed to leave China without approval as of November 8.
Bottom line: China is the leading producer of equipment for rare earth refineries and magnet factories, so this could delay other countries’ efforts to establish their own production.
October 9, 2025
Blocking exports of five more rare earth elements
The ministry adds five more types of rare earths to the list of seven that was issued on April 4 for which export licenses are required, as well as magnets and other materials made from them. The rule comes into force on November 8th.
Result: By expanding the number of rare earths that require licenses, China’s government would assert broader authority over global supply chains.
October 9, 2025
Restriction of battery manufacturing equipment
The ministry issues a long list of battery manufacturing materials that will not be allowed to leave China without special permission from November 8th.
Result: These changes would give China more power over the world’s electric vehicle makers, which are big consumers of batteries, as well as electricity companies that need Chinese technology to build large grid storage batteries for solar or wind power.
October 9, 2025
Ban on exports of diamond saws and similar equipment
The ministry stops the export of super-rigid materials, such as diamond saws, which are used in the manufacture of semiconductors and solar chips, from November 8th.
Conclusion: This could help China achieve leadership in semiconductor manufacturing and protect its 98% global market share in manufacturing solar wafers, the most important component of solar panels.
October 9, 2025
Controlling trade in rare earth magnets manufactured outside of China
The ministry prohibits any movement without its permission across any national border of magnets made outside China if China’s rare earths account for at least 0.1% of the magnet’s value, starting December 1. Ministry permission is also required for movements of magnets made abroad using rare earth technologies originally developed by China. The ministry worded the rule ambiguously so that it could apply not just to magnets but also to virtually anything manufactured outside of China that includes traces of rare earths, from electric motors to car seats. Permission applications to the ministry must provide extensive details about the products and how they will be used. Requests for military production will be “in principle” denied.
Result: China, which has tilted toward Russia in the Ukraine war, could use this rule to prevent other countries from supplying weapons to Ukraine or building their own arsenal.
October 14, 2025
Stopping exports to Europe of Nexperia computer chips
Nexperia, a company in the Netherlands that was acquired in 2018 by a Chinese consortium, announces that it has been ordered to stop semiconductor exports from China. European carmakers, including Volkswagen, are soon expected to run out of computer chips.
Result: China, which acted after the Dutch government took over Nexperia, shows again how it can use export controls to affect global supply chains.
c.2025 The New York Times Company
