China Tightens Rare-Earth Controls Ahead of Possible Trump–Xi Talks

China has expanded export curbs on rare earths and related know-how, adding licensing to any product with more than 0.1% domestically sourced rare earth content or made using Chinese extraction, refining, magnet-making, or recycling technology. 

Permits will be denied for counterparties linked to foreign militaries or items that could be repurposed for weaponry or terrorism. The rules cover materials, technology, and labor. Beijing also barred its citizens from supporting overseas mining or magnet manufacturing without approval.

With China supplying about 70% of global rare earths, the broadened scope, from raw materials to intellectual property, tightens Beijing’s grip on a supply chain critical to autos, defense, and semiconductors while nudging more value capture onshore.

Since late last year, China has moved to single-use export licenses and has now widened controls, which industry groups say have already imposed uneven approval timelines and multi-million-dollar costs on some firms. 

Chinese officials have proffered limited compromises by applying certain exemptions for emergency medical and disaster-relief needs, plus a transition period to honor existing contracts, echoing past U.S. tech-export bans that left room for case-by-case approvals. 

What Does This Mean for Me?

The timing lands weeks before a potential meeting between U.S. President Donald Trump and President Xi Jinping on the sidelines of APEC in late October, highlighting the sector’s role as leverage in broader trade talks. 

For companies in rare earth-dependent supply chains across the world, this news confirms that geopolitics will have a heavy bearing on availability and lead times across 2025.