China imposes new rules and tightens control over rare earth mining and processing

China announced new provisional measures on Friday, the 22nd, that strengthen controls on the mining and processing of rare earths , used in a variety of high-tech products, including electric vehicles , smartphones, and military fighter jets. The rules, published by the Ministry of Industry and Information Technology, apply to both rare earths mined in China and those shipped to the country for refining.

Companies will have to comply with quotas for various minerals. They will also need government approval to handle rare earths and accurately report the volume of products handled. Violators will be subject to legal penalties and may have their quotas reduced.

China has been tightening controls on rare earths, used in high technology, in response to US restrictions on Chinese access to advanced innovations. While not scarce, these 17 elements are difficult to mine in viable concentrations.

In April, after then-President Donald Trump imposed tariffs, Beijing began demanding licenses for seven additional minerals, citing national security and non-proliferation commitments. The move raised concerns about a shortage of minerals in the US and other countries, which were implicated in trade negotiations.

In June, following US concessions on chip software and jet engines, China accelerated export approvals. The following month, it announced a crackdown on smuggling, reinforcing its control efforts. The country dominates the sector: it processes almost 90% of global production and holds half of the known reserves, in addition to importing inputs from Myanmar.

With a monopoly on refining technologies, China supplies 70% of the rare earths used by the US. The new rules expand licensing requirements, centralize oversight, and impose stricter environmental standards, but without detailing production or export quotas, a sign that Beijing intends to consolidate its dominance over the sector.

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