China’s Ministry of Commerce issued two announcements today, claiming to safeguard national security and interests, announcing the implementation of export controls on overseas rare earth items and rare earth technologies. In addition, some logic chips, memory chips, and artificial intelligence with potential military applications are also required to be reviewed and approved on a case-by-case basis.

The official website of the Ministry of Commerce of China released today, "Announcement of the decision to implement export controls on overseas rare earth-related items" and "Announcement of the decision to implement export controls on rare earth-related technologies."

It is mentioned in the "Decision to Announce the Implementation of Export Controls on Related Overseas Rare Earth Items" that in order to safeguard national security and interests, in accordance with the "Export Control Law" and the "Dual-use Items Export Control Regulations" and with the approval of the State Council, overseas organizations and individuals must obtain a dual-use item export license issued by the Ministry of Commerce before exporting specified items to other countries and regions outside China.

There are three categories of stipulated items. One is items containing, integrating or mixed with samarium metal, dysprosium metal, rhodium metal and other items originating in China, rare earth permanent magnet materials, rare earth target materials, etc. manufactured overseas, and the former accounts for 0.1% or more of the value of the latter manufactured overseas. The second is related rare earth items produced overseas using technologies originating in China in rare earth mining, smelting separation, metal smelting, magnetic material manufacturing, and rare earth secondary resource recycling; the third is related rare earth items originating in China such as samarium metal and dysprosium metal.

Among them, the first two items will be implemented from December 1, 2025, and the third item will be implemented from the date of announcement.

The announcement mentioned that export applications to overseas military users, as well as export applications to importers and end-users listed on the export control list and watch list, export applications from subsidiaries, branches and other branches of the above-mentioned companies holding 50% or more, will not be allowed in principle. In addition, in principle, export applications for the design, development, production, and use of weapons of mass destruction and their delivery vehicles, for terrorist purposes, military purposes, or to enhance military potential are not allowed.

The announcement mentioned that export applications for the development and production of logic chips of 14 nanometers and below or memory chips of 256 layers and above, as well as production equipment, testing equipment and materials for manufacturing semiconductors with the above process, or the development of artificial intelligence with potential military applications, will be reviewed and approved on a case-by-case basis.

In addition, the "Announcement of the Decision to Implement Export Controls on Rare Earth-Related Technologies" mentioned that it was decided to implement export controls on rare earth-related technologies and other items. The Ministry of Commerce’s announcement stated that technologies related to rare earth mining, smelting separation, metal smelting, magnetic material manufacturing, rare earth secondary resource recycling and their carriers, as well as related production line assembly, debugging, maintenance, repair, upgrade and other technologies shall not be exported without permission. The announcement will be implemented from the date of issuance.

The meaning and scope of rare earths, smelting separation, metal smelting, and rare earth secondary resources mentioned in the announcement shall be implemented in accordance with the relevant provisions of the "Rare Earth Management Regulations"; magnetic material manufacturing refers to the manufacturing technology of samarium cobalt, neodymium iron boron, and cerium magnets; the technology and its carrier mentioned in the announcement include technical-related information and other data, such as design drawings, process specifications, process parameters, processing procedures, simulation data, etc.

The announcement stated that if non-controlled goods, technologies or services are exported, but the export operator knows that they are used for or substantially contribute to overseas rare earth manufacturing, they should also apply for a dual-use item export license from the Ministry of Commerce before exporting. Without permission, they shall not be provided.

Further reading: Reuters: G7 and EU plan to set lower price limit for rare earths, tax on some Chinese products ECB warns: China's rare earth supply disruptions will threaten euro zone economy European Chamber of Commerce: China's rare earth exports are blocked, and the supply chain of European companies is still affected Trump warns China: Ensure supply of rare earth magnets or face tariffs of up to 200% Strengthen negotiating leverage? Beijing warns foreign companies not to hoard rare earths