China Clarifies Rare-Earth Export Controls Amid Global Supply Chain Concerns

China's Ministry of Commerce (MOFCOM) has clarified that its newly imposed rare-earth export controls are targeted regulatory measures rather than blanket bans. The ministry emphasized that licenses will be issued for eligible civilian trade, framing the MOVE as a lawful adjustment to national security protocols. Rare earths, critical for electric vehicles, wind turbines, and defense electronics, remain a linchpin in global supply chains, with China controlling 70% of production and 90% of processing.

The Oct. 9 policy, coordinated with China's General Administration of Customs, aligns with broader efforts to refine export controls under domestic law and non-proliferation commitments. MOFCOM cited the military significance of medium- and heavy rare earths, noting advance consultations with international partners. Licensing—not prohibition—will govern implementation, with Beijing considering additional trade facilitation measures.