China Expands Export Controls on Rare Earth Products in Latest FAQ Update

Highlights

• China's MOFCOM issued updated export controls on rare earth-containing products, specifically targeting primary processed NdFeB magnetic materials.
• The new regulations focus on midstream processing of rare earth materials like dysprosium and terbium.
• Finished electronic components are exempted from these controls.
• These controls could significantly impact global trade dynamics, especially for U.S. and allied industries dependent on rare earth technologies.

The Bureau of Industry Security and Import and Export Control of the Ministry of Commerce of the People's Republic of China (opens in a new tab) (MOFCOM) has issued an important regulatory update that further clarifies export controls on rare earth-containing products. The update, released as part of the newly published “Frequently Asked Questions on Dual-Use Items (IV) (Rare Earths),” defines a key distinction in China’s rare earth export policy — a move with potentially significant implications for global supply chains.

According to the guidance, primary processed products derived from NdFeB (neodymium-iron-boron) magnetic materials, which include heavy rare earth elements such as dysprosium and terbium, now fall explicitly under China’s export control regime. Examples include magnetic steel, magnetic rings, and magnetic stones, which are commonly used in defense systems, electric vehicle (EV) drivetrains, and wind turbines.

However, the notice draws a regulatory line at downstream manufacturing: electronic components such as motors, and finished electronic products like headphones or speakers, are not included in the scope of control, even if they contain rare earth materials.

This exemption may allow certain categories of international trade to continue unimpeded, albeit under tighter scrutiny at the earlier processing stage.

This development reinforces China's strategic grip on the midstream of rare earths, particularly over dysprosium and terbium, two critical elements used to enhance magnet durability under high temperatures. The updated controls could tighten supply for U.S. and allied industries amid the ongoing global trade recalibration and intensifying technology decoupling.  The news was reported in Shanghai Metals Market (opens in a new tab).