China has dramatically expanded its export controls on rare earth minerals, further tightening its grip on materials critical for defense, technology, and semiconductor industries.

China’s Ministry of Commerce issued the new restrictions on 9 October 2025. The new restrictions add five more rare earth elements to the controlled list, meaning China now restricts the export of 12 out of 17 rare earths, and apply not only to the raw elements but also to refining technologies and even to downstream components containing trace amounts of Chinese content. Foreign companies must obtain licenses from Beijing, providing detailed end-use and manufacturing information to export certain products leveraging Chinese rare earths.

The Impact of these Actions:

• This is a control level of incredible proportion. It is a clear signal to every government and company that the PRC will set the rules regarding use of rare-earths globally. Any product with more than 0.1% of Chinese-sourced rare earths need Beijing’s license, even if it is made in America. And no licenses will be granted for foreign militaries or weapons.
• There is also a ban on exporting rare earth mining, processing and recycling tech. No Chinese citizen can work on an overseas rare earth project without permission.
• Rare earth-dependent industries include defense, clean energy, and high-tech manufacturing, but they touch every other aspect of the economy, not just in the United States but globally. ​
• The restrictions are seen as part of China’s broader strategy to use rare earth dominance for leverage in trade negotiations and as a response to U.S. moves on chipmaking and technology bans. But this is looking at the situation from a short term transactional point of view. This is wrong. This is part of a long term strategy to ensure this century is seen as the Chinese century. How we respond will decide if that comes to pass or not. ​
• Supply chains for U.S. defense, aviation, space, electric vehicles, and clean energy have always been vulnerable to PRCs dominance in rare-earth refining. But this is something different. It gives control of use.
• Expect sales to continue, but we are not more vulnerable.

With China controlling 70% of global mining, 90% of processing, and 93% of permanent magnet production, they are in the lead in every way in this domain.

Surprised?

This has been a known issue for years. Executive orders were issued in 2019 and 2020 declaring a national emergency for rare earths, ordering measures to boost domestic mining, processing and defense-related supply chains. In 2025 multiple new Executive Orders were signed by President Trump for expedited permitting and investment support. Thank goodness for these. But even with the increased focus these things take time. With the escalation by the PRC we need to consider doing even more.

What can America do?

The U.S. is already investing in building domestic rare earth mining and refining capacity through the Executive Orders mentioned above as well as the Defense Production Act and substantial increase in federal funding.​ Notable facilities under construction or expansion are supported by companies like MP Materials, Lynas USA, and Noveon Magnetics. But these efforts take time. They are hard to accelerate.

But acceleration is possible. It can be done by streamlining permitting, funding more R&D, working internationally with other producers, and investing in development of a robust U.S. supply chain.

If we put an all of nation acceleration plan in place, one that moves faster than current plans, we may establish a robust supply chain, from mining to finished components, in five years or so.

The Nightmare Scenario

Imagine if we cannot produce more fighters, submarines, ships or guided bombs till we ramp up our refinement of rare earths. Can our nation’s defenses endure for another decade without increased production?