It is a strategic move in advance of new round of tricky trade talks with the US.
\n Beijing
\nChina tightened export controls for critical rare-earth metals on Thursday.
\nThe new restrictions, announced by the Ministry of Commerce, come in advance of an expected meeting between United States President Donald Trump and his Chinese counterpart, Xi Jinping, later this month.
\nThe world\u2019s two largest economies have been locked in trade negotiations aimed at calming tensions, after their tit-for-tat tariffs against each other earlier this year, before agreeing to pull back some of those duties.
\nRare-earth metals are one of China\u2019s major levers of influence with the US.
\nWhat has China announced?
\nIn \u201cannouncement number 61 of 2025\u201d, China said it was increasing export controls for five rare-earth metals in addition to the seven it announced in April this year.
\nThe five metals added to the list are holmium, erbium, thulium, europium and ytterbium.
\nThe seven minerals China placed export restrictions on earlier this year are samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium.
\nThere are 17 rare-earth metals in total \u2013 the 15 lanthanides (metallic elements) on the periodic table, as well as scandium and yttrium. China now has export restrictions on 12 of them.
\nAdditionally, China also placed restrictions on the export of specialist technological equipment used to refine rare-earth metals on Thursday. Most of these restrictions will come into effect on December 1.
\nThe 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.
\nTo obtain the licence, foreign companies must explain the intended use of the product they wish to make using Chinese rare-earth metals.
\nWhy has China tightened control over rare earths?
\nChina cited national security interests as the reason for these new restrictions.
\n\u201cRare-earth-related items have dual-use properties for both civilian and military applications. Implementing export controls on them is an international practice,\u201d a Chinese Commerce Ministry spokesperson told reporters.
\nThe spokesperson added that \u201ccertain\u201d foreign organisations and individuals have been directly transferring \u2013 or processing and then transferring \u2013 controlled rare-earth materials originating from China to \u201crelevant organisations and individuals directly or indirectly for military and other sensitive applications\u201d.
\n\u201cThis has caused significant damage or posed potential threats to China\u2019s national security and interests, adversely affected international peace and stability, and hindered global non-proliferation efforts.\u201d
\nWhat are rare-earth metals used for?
\nRare-earth metals are essential for the production of technological equipment such as electric cars, lithium-ion batteries, LED televisions and camera lenses.
\nThe metals are crucial for the US defence industry. According to the Center for Strategic and International Studies (CSIS) think tank, rare earths are used to manufacture components of F-35 fighter jets, Virginia and Columbia-class submarines, Tomahawk missiles, radar systems, Predator unmanned aerial vehicles and the Joint Direct Attack Munition series of smart bombs.
\nAdditionally, rare earths are used to create semiconductors, which are used in artificial intelligence (AI) technology.
\nWhy does this matter now?
\nThis is a strategic move on the part of China, analysts say.
\nChina is the largest producer of these rare-earth metals. It mines at least 60 percent and processes about 90 percent of the world\u2019s rare-earth metals, CSIS reported in 2024.
\nThe new restrictions have been announced just three weeks before Trump visits South Korea to attend the Asia-Pacific Economic Cooperation (APEC) summit in late October.
\nDuring his visit, Trump is expected to meet Xi. The leaders last met in person in 2019.
\nEarlier this year, Trump imposed tariffs of 145 percent on Chinese imports to the US. China retaliated with 125 percent tariffs. After reducing their tariffs to 30 percent and 10 percent, respectively, in May, the two sides struck a truce in August, agreeing on a 90-day pause to allow time for trade talks. That pause has since been renewed twice as talks continue \u2013 most recently between US and Chinese officials in Spain last month.
\nChina\u2019s new restrictions on rare-earth metals, which Trump is known to want badly, give it more leverage for these talks.
\nGracelin Baskaran, director of the CSIS Critical Minerals Security Program, explained that the US defence industry is facing significant challenges caused by its limited production ability to meet rising defence technology needs. By restricting exports, China may be able to accelerate the expansion of its military strength at a faster pace than the US.
\n\u201cThe new restrictions will only deepen these vulnerabilities, further widening the capability gap,\u201d Baskaran said.
\n\u201cThe move both strengthens Beijing\u2019s leverage in upcoming talks while also undercutting US efforts to bolster its industrial base at a time where Indo-Pacific tension is climbing,\u201d she said.
\n\u201cMost [restrictions] don\u2019t go into effect until December 1, 2025, leaving close to 2.5 months for these negotiations.\u201d
\nThe Chinese Commerce Ministry spokesperson told reporters on Thursday: \u201cChina is willing to strengthen communication and cooperation through bilateral and multilateral export control dialogue mechanisms, promote compliant trade, and ensure the security and stability of global industrial and supply chains.\u201d
\nKristin Vekasi, the Mansfield chair of Japan and Indo-Pacific Affairs at the University of Montana, said Beijing\u2019s latest moves are about leverage. She said this is a part of \u201cpre-meeting choreography\u201d before Trump\u2019s meeting with Xi during the APEC summit in South Korea.
\n\u201cChina hasn\u2019t yet pulled the trigger on export restrictions, but it\u2019s reminding Washington that it could. This move signals that Beijing is willing to weaponise its dominant position in the rare earths supply chain, especially as both governments prepare for a potential Trump-Xi meeting at APEC. It\u2019s a classic signalling manoeuvre designed to strengthen China\u2019s negotiating hand.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
It is a strategic move in advance of new round of tricky trade talks with the US. Beijing China tightened export controls for critical rare-earth metals on Thursday. The new restrictions, announced by the Ministry of Commerce, come in advance of an expected meeting between United States President Donald Trump and his Chinese counterpart, Xi […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-509477","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n