China Tightens Rare Earth Export Controls

China announced tougher export controls on rare earths produced with domestic raw materials or technology, targeting their use in overseas defense and advanced semiconductor industries.
The measures expand April curbs to seven elements - including samarium and dysprosium - and apply to alloys and oxides. Products manufactured abroad that contain 0.1% or more Chinese rare earths, or that rely on Chinese technology, now require export permits for dual-use civilian and military items.
Controlled technologies cover rare earth mining, refining, separation and magnetic material manufacturing. Exports to foreign military enterprises, entities on export-control lists and their subsidiaries will generally be denied. Shipments tied to advanced semiconductors - defined as logic chips below 14 nm or memory with 256 layers or more - will undergo individual review, as will rare earths used in AI research with potential military applications.
Observers say the move is designed to prevent indirect exports of permanent magnets and related products made abroad with Chinese inputs and to pressure countries that have imposed tariffs or trade restrictions. The policy is expected to weigh on U.S. and South Korean supply chains and could be broadened further if geopolitical tensions persist.