China Clarifies Rare-Earth Export Controls as Licensing-Based, Not Bans

China's Ministry of Commerce (MOFCOM) has clarified that its newly implemented rare-earth export controls are not blanket bans but rather targeted licensing measures tied to national security. The policy, enacted in collaboration with the General Administration of Customs on October 9, aims to refine China's export control system in compliance with domestic law and non-proliferation commitments.

Rare earths—17 critical elements used in EV motors, wind turbines, and defense electronics—are dominated by China, which produces 70% of global supply and handles 90% of processing. The licensing system will Ripple through global supply chains, even for mining or manufacturing done outside China.

MOFCOM emphasized that licenses will be granted for eligible civilian trade, with reviews conducted under legal frameworks. The spokesperson noted advance consultations with international partners and hinted at forthcoming facilitation measures.