China tightens export controls on rare-earth metals: Why this matters

"The new restrictions were announced by the Chinese Ministry of Commerce, and come ahead of an expected meeting between Chinese President Xi Jinping and United States President Donald Trump's later this month. The world's two largest economies have been locked in trade negotiations aimed at calming tensions, after they raised tit-for-tat tariffs against each other earlier this year, before then agreeing to pull back on some of those levies. Rare-earth metals are one of China's major levers of influence with the US."

"In announcement number 61 of 2025, China said it was increasing export controls for five rare-earth metals in addition to the seven it announced in April this year. The five metals added to the list are holmium, erbium, thulium, europium and ytterbium. The seven minerals China placed export restrictions on earlier this year are samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium. There are 17 rare-earth metals in total the 15 lanthanides (metallic elements) on the periodic table; scandium; and yttrium. China now has export restrictions on 12 of them."

"In addition, on Thursday, China also placed restrictions on the export of specialist technological equipment used to refine rare-earth metals. Most of these restrictions will go into effect from December 1. The announcement means that foreign companies will need to obtain special approvals from Beijing if they wish to export rare-earth magnets and certain semiconductor materials that have at least 0.1 percent heavy rare-earth metals from China."

China tightened export controls on critical rare-earth metals and specialist refining equipment ahead of an expected meeting between Chinese and US leaders. The move added five elements—holmium, erbium, thulium, europium and ytterbium—to seven previously restricted minerals, bringing restrictions to 12 of the 17 rare-earth metals. Foreign firms exporting rare-earth magnets or certain semiconductor materials containing at least 0.1 percent heavy rare-earths will need special approvals and must explain intended product use. Most measures take effect from December 1. China cited national security interests and noted rare-earth items have dual-use properties.

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