China tightens rare-earth export controls, Europe affected

MBDA and its subsidiary Matra Electronique (MEL) have opened a new Industry 4.0 production facility in Venette, Hauts-de-France, officially inaugurated on 18 November, lifting weekly electronic component transfers from about 200,000 to 500,000.

On 9 October, China’s Ministry of Commerce announced a far-reaching expansion of oversight over foreign sales of dual-use civilian and military goods - explicitly naming rare earth metals, technologies to produce them, advanced lithium-ion batteries, synthetic graphite anodes and selected superhard materials. From 1 December, exports of products made outside China that contain at least 0.1% Chinese rare earths by value, or that were produced using Chinese technologies in these fields, will require a licence. Licences will generally be denied when the final recipient is a defence company; advanced semiconductor components (14 nm and below) and their production equipment will be assessed case-by-case.

The restricted metals list is being widened to include holmium, erbium, thulium, europium and ytterbium, and Chinese citizens will be barred from participating in foreign exploration, extraction, processing or magnet-production projects without prior approval. Beijing cites national security and non‑proliferation concerns. The measures’ extraterritorial scope marks an unprecedented escalation with immediate implications for supply chains, defence procurement and industrial planning, increasing pressure to diversify sourcing and accelerate domestic recycling and substitution efforts.