China Tightens Rare Earth Export Rules, Targets Defense and Semiconductor Sectors

Beijing, October 9, 2025: The Chinese government tightened export restrictions on Thursday by introducing additional new restrictions on process technology, except for overseas cooperation. This step aims to limit supply to foreign governments, particularly for the defense and semiconductor industries. According to the latest set of regulations, the export of technology used in mining, processing, or producing magnets from rare earth now requires mandatory approval from the Chinese government.

Prohibition on Unauthorized International Collaboration

Understanding the importance of rare earth minerals in the next economic revolution, the Chinese government has introduced measures that will prohibit unauthorized international collaboration in this sector. China produces around 90% of the total processed rare earths and rare earth magnets globally. Hence, the restrictions will have a direct implication on different core sectors, including semiconductors.

No Licenses to Defence or Semiconductor Manufacturers

While several rare earth materials were already placed under export controls earlier this year, the latest announcement makes it clear that licenses are unlikely to be granted to defense companies or semiconductor manufacturers abroad.

The Ministry of Commerce (Government of China) has also restricted any Chinese company from cooperating with any overseas firm on a rare earth project without proper and explicit authorization. The step also underlines China’s intention to safeguard strategic resources (such as rare earth minerals) and technologies that are critical to advanced manufacturing, electronics, phones, defence, and auto sectors.

China’s move adds a fresh layer of scrutiny to the global supply chain for rare earths, elements vital for producing electric vehicles, wind turbines, smartphones, and precision-guided weapons.

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