Highlights

• China's MOFCOM announces sweeping export restrictions on rare earth materials and technologies effective December 1, 2025.
• New regulations require foreign companies to obtain export licenses for products containing even 0.1% Chinese-origin rare earth materials.
• The policy targets semiconductor and AI sectors, signaling Beijing's strategic intent to control global critical minerals supply chains.

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As Rare Earth Exchanges (REEx) reported, in a major escalation of its critical minerals policy, China’s Ministry of Commerce (MOFCOM) today announced (opens in a new tab) sweeping new export restrictions on rare earth materials, processing technologies, and derivative products used in semiconductors, defense, and AI systems. The move — MOFCOM Announcement No. 61 (opens in a new tab) (2025) — signals Beijing’s intent to tighten control over the global rare earth supply chain just as U.S. and allied industries rush to diversify away from Chinese dependence.

Key Provisions and Implications

Effective December 1, 2025, the new rules require any foreign company exporting products made with Chinese-origin rare earth materials or technologies — even outside China — to obtain a dual-use export license from MOFCOM. This includes goods containing as little as 0.1% Chinese-origin material by value, as well as items produced abroad using Chinese mining, refining, magnet, or recycling technology.

For companies operating in Southeast Asia — such as Malaysia, Vietnam, or Thailand — that rely on Chinese-designed separation or magnet fabrication equipment, this regulation could effectively extend Chinese export control jurisdiction beyond its borders, adding a new layer of uncertainty for multinational manufacturers.

Semiconductors and AI in the Crosshairs

Perhaps most strikingly, MOFCOM has now formally linked rare earth exports to the semiconductor and AI sectors. Any exports tied to logic chips at 14 nanometers or below, memory chips at 256 layers or more, or AI development with potential military applications will face a case-by-case review — an unmistakable message to the West. This could disrupt the delicate global balance of chipmaking supply chains, where rare earths are crucial for lithography, wafer polishing, and magnetic components.

Limited Humanitarian Exceptions

Licenses may be waived only for emergency humanitarian use — such as disaster relief or epidemic response — provided the exporter notifies MOFCOM within ten business days and certifies that the materials will not be used in ways that “harm China’s national security.”

Global Fallout

For the U.S., Japan, South Korea, and Europe, the announcement comes as a strategic warning shot: any product containing Chinese-origin rare earths or produced using Chinese refining know-how may now fall under Beijing’s control regime. The ripple effects could reach defense contractors, EV manufacturers, and semiconductor fabs alike.

This new rule extends China’s reach from resource control to technology enforcement, making clear that Beijing intends to weaponize its near-monopoly not just on raw materials, but on the know-how that turns those materials into high-tech dominance.

Disclaimer: This news originates from Chinese state media (Ministry of Commerce, PRC). Information should be independently verified by other official or commercial sources.

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