China Tightens Rare Earth Export Controls Ahead of Trump-Xi Talks

On October 9, 2025, China's Ministry of Commerce announced significant new restrictions on the export of rare earth materials and related technologies. This move expands upon earlier controls implemented in April, which had already caused global supply shortages. The latest regulations specifically target exports to overseas defense firms and semiconductor manufacturers, reflecting China's strategic leverage in ongoing trade negotiations with the United States. China currently produces over 90% of the world's processed rare earths, which are critical for a wide array of products, including electric vehicles, smartphones, and military equipment.

China’s Rare Earth Stranglehold: A Global Threat to Defence and TechChina’s rare earth clampdown signals strategic trade playChina Curbs Rare Earth Exports to Defence Firms, ChipmakersBBC NewsTaipei Times

The new export controls require licenses for the export of technologies related to rare earth mining, processing, and recycling, as well as for the manufacturing of rare earth magnets. Notably, the regulations prohibit exports to foreign military users and impose case-by-case reviews for applications involving advanced semiconductor technologies. The Ministry of Commerce emphasized that these measures are intended to safeguard national security and prevent the misuse of rare earths in military applications.

CNBC

Analysts view these restrictions as a strategic maneuver by China to enhance its bargaining position ahead of an anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month. Tim Zhang, founder of Edge Research, noted that the timing of the announcement is designed to increase Beijing's leverage in negotiations, particularly as both nations have been engaged in a tit-for-tat trade war.

NPR

Critics argue that these restrictions could exacerbate existing tensions between the U.S. and China. The U.S. has been aware of its reliance on Chinese rare earths since a previous embargo in 2010, and experts warn that the new controls could further disrupt supply chains for American manufacturers. The European Commission has also expressed concerns, urging China to act as a reliable partner in ensuring stable access to critical raw materials.

Castanet

A spokesperson for China's Ministry of Commerce stated, "These actions are necessary to protect national security and to fulfill international obligations regarding non-proliferation." The ministry also indicated that the new rules would not only affect military applications but also have implications for civilian industries reliant on rare earths.

The Guardian

As the U.S. and China prepare for their upcoming summit, the new export controls on rare earths are expected to be a focal point of discussion. Observers anticipate that the U.S. may need to make concessions, such as tariff reductions, to address the growing concerns over supply chain vulnerabilities. The situation underscores the critical role that rare earths play in the broader context of U.S.-China relations and global trade dynamics.

NPR

• “These activities have caused significant harm or posed potential threats to China's national security and interests, adversely affected international peace and stability, and undermined global non-proliferation efforts.” — Ministry of Commerce Spokesperson

NPR

• “From a geostrategic perspective, this helps with increasing leverage for Beijing ahead of the anticipated Trump-Xi summit in [South] Korea later this month,” — Tim Zhang, Founder of Edge Research

Taipei Times

• “China has cornered the market for processing and refining of key critical minerals,” — U.S. Government Statement

New York Times

The tightening of export controls on rare earths marks a significant escalation in the ongoing trade tensions between the U.S. and China, with potential ramifications for global supply chains and international relations.

CNN