China has just moved a piece that can alter the global board of strategic minerals. Beijing has approved two official announcements that establish a new regime of control over the rare earth and the technologies linked to its extraction, processing, and manufacturing of magnets. The change is not minor: any product manufactured outside the country containing just 0.1% of materials of Chinese origin will now require a license to be exported. This is China’s most ambitious response in an area that it has been using for years as an economic and political lever.
This movement does not come from nowhere. The Asian giant has been weaving a strategy for months to strengthen its control over the materials that feed the global technology industry. In April, it restricted the export of metals such as gallium and germanium, essential for the manufacture of chips. Weeks later, it expanded the list to include scandium and dysprosium. This offensive is based on a robust foundation consisting of 39 university programs specializing in rare earths, ensuring the knowledge and manpower that support its leadership.
How the Asian Giant Transfers Its Power Over Minerals to the Rest of the World
With the new provisions of the Ministry of Commerce, Beijing introduces extraterritorial control over strategic minerals for the first time. It not only regulates what leaves its territory but also what other countries produce with materials or technologies of Chinese origin. Under national security criteria, China will now have the authority to decide what is exported, to whom, and for what purposes. Applications for military purposes will, in principle, be denied, while those related to semiconductors or artificial intelligence will be examined on a case-by-case basis.
The second standard approved on the same day goes one step further: it is not limited to materials; but it also protects the technical knowledge that makes them possible. This measure prohibits the transfer without permission of its extraction, refining, metallurgy, or magnet manufacturing technologies, as well as any type of technical assistance linked to them. The definition of ‘export’ is broad and includes consulting, training, or collaboration in research projects. With this, Beijing shields its industrial experience and restricts the dissemination of its know-how outside its borders.
The application schedule is staggered, with part of the new framework taking effect immediately and the rest set for December 1. Simultaneously, the Ministry of Commerce expands its scope of action with an additional package that adds new items to the checklist , including graphite anodes, certain lithium-ion batteries, synthetic diamonds, and various rare earths not listed in previous restrictions. This expansion directly targets industries with high technological value and reinforces the Asian giant’s ability to set the pace of the global supply chain.
</div>The new rules could disrupt the pace of entire sectors. Magnets and alloys derived from rare earths play a crucial role in electric motors, wind turbines, medical equipment, and consumer electronics. Under the new licensing system, every component that utilizes Chinese materials or technologies will now require additional oversight. Companies that rely on intermediate suppliers, particularly in the automotive and energy sectors, are especially vulnerable. For many, this move confirms that Beijing’s industrial control is no longer limited to its borders.
Applications subject to heightened scrutiny include advanced semiconductors and artificial intelligence. The Ministry of Commerce has established procedures for a case-by-case review for exports related to chips 14 nanometers or smaller and high-density memories. The supervision extends to AI projects with military or defense potential but is not a blanket ban. Instead, a system of selective licenses allows Beijing to adjust its response depending on the context and the destination country.
The new framework’s application will necessitate a high degree of coordination between companies and authorities. Exporters must apply for licenses through the Ministry of Commerce system and submit documentation in Chinese. Additionally, they must issue compliance notices to subsequent links in the chain and report each authorized shipment. A consultation channel has also been established for doubtful cases, reflecting the complexity of the process. Effectiveness will depend heavily on the supervisory capacity that Beijing can build in the following months.
Exporters must apply for licenses through the Ministry of Commerce system and present documentation in Chinese
The timing of these measures is intentional. Beijing announces these regulations just before a planned meeting between Xi Jinping and Donald Trump in South Korea, aiming to strengthen its negotiating position. For months, rare earths have been a focal point in trade discussions between the two nations, and the new regulations intensify pressure on Washington. China’s strategy is clear: to showcase its lever over sectors that the U.S. considers strategic, including semiconductors and materials that underpin its military industry.
With these regulations, Beijing closes a circle it has been drawing for years: controlling access to materials, the technologies that transform them, and the knowledge that makes them possible. The Asian country converts strategic minerals into instruments of economic and diplomatic power , reinforcing its weight in negotiations with Washington. For the United States and its allies, this new landscape is an uncomfortable reminder: while they seek to reduce dependency, the Asian giant continues to set the pace for the resources that sustain the global technological economy.
Images | wirestock | ArthurHidden | aboodi vesakaran
In Xataka | In 1978, Chinese engineers visited two key US companies. Upon their return, an empire began: rare earths.