its new rare earth rules target the United States

China has just moved a piece that can alter the global board of strategic minerals. Beijing has approvedtwo official announcements that establish a new regime of control over the rare earth and technologies linked to its extraction, processing and manufacturing of magnets. The change is not minor: any product manufactured outside the country that contains just 0.1% of materials of Chinese origin will need a license to be exported. It is China’s most ambitious response in an area that it has been using for years as an economic and political lever.

This movement does not come from nowhere. The Asian giant has been weaving a strategy for months to strengthen its control over the materials that feed the global technology industry. In April it already restricted the export of metals such as gallium and germanium, essential for the manufacture of chips, and weeks later expanded the list with scandium and dysprosium. Later this year we explain how This offensive is based on a solid base: 39 university programs specialized in rare earths that ensure the knowledge and manpower that today support its leadership.

How the Asian giant transfers its power over minerals to the rest of the world

With the new provisions of the Ministry of Commerce, Beijing introduces extraterritorial control over strategic minerals for the first time. It not only regulates what leaves its territory, it also what other countries produce with materials or technologies of Chinese origin. The country will be able to decide what is exported, to whom and for what purposes, under national security criteria. Applications for military purposes will bein principle, denied, while those related to semiconductors or artificial intelligence will be examined on a case-by-case basis.

The second standard approved on the same day goes one step further: it is not limited to materials, but it protects the technical knowledge that makes them possible. The Asian country prohibits the transfer without permission of its extraction, refining, metallurgy or magnet manufacturing technologies, as well as any type of technical assistance linked to them. The definition of “export” is broad and includes activities such as consulting, training or collaboration in research projects. With this measure, Beijing shields its industrial experience and restricts the dissemination of its know-how outside its borders.

The application schedule is staggered. Part of the new framework takes effect immediately, while the rest will take effect on December 1. At the same time, the Ministry of Commerce expands its scope of action with an additional package that add new items to the checklistincluding graphite anodes, certain lithium-ion batteries, synthetic diamonds, and various rare earths that were not listed in the previous restrictions. The expansion directly targets industries with high technological value and reinforces the Asian giant’s ability to set the pace of the global supply chain.

The new rules could disrupt the pace of entire sectors. Magnets and alloys derived from rare earths are present in electric motors, wind turbines, medical equipment and consumer electronics. Under the new licensing system, every component that uses Chinese materials or technologies will have to go through an additional layer of oversight. The most exposed companies are those that depend on intermediate suppliers, especially in the automotive and energy sectors. For many, this move confirms that Beijing’s industrial control is no longer limited to its borders.

Applications subject to increased scrutiny include advanced semiconductors and artificial intelligence. The Ministry of Commerce has established a procedure case-by-case review for exports related to chips 14 nanometers or smaller and high-density memories. In the case of AI, supervision extends to projects with military or defense potential. This is not a general veto, but rather a system of selective licenses that allows Beijing to adjust its response depending on the context and the country of destination.

The application of the new framework will require a high degree of coordination between companies and authorities. Exporters must apply for licenses through the Ministry of Commerce system and submit documentation in Chinese. In addition, they must issue compliance notices to the following links in the chain and report each approved shipment. The ministry has also enabled a consultation channel for doubtful cases, which reflects the complexity of the process. Even in Beijing they admit that effectiveness will depend on the supervision capacity that it manages to build in the coming months.

The moment is not coincidental. Beijing announces these measures just before the meeting between Xi Jinping and Donald Trump planned in South Koreain an attempt to strengthen their negotiating position. For months, rare earths have been at the center of trade talks between the two countries, and the new regulations add pressure on Washington. The strategy is clear: demonstrate that the Asian giant retains decisive levers in sectors that the United States considers strategic, from semiconductors to the materials that support its military industry.

With these regulations, Beijing closes a circle that it had been drawing for years: it controls access to materials, the technologies that transform them and the knowledge that makes them possible. The Asian country converts strategic minerals into an instrument of economic and diplomatic power, reinforcing its weight in the negotiation with Washington. For the United States and its allies, the new situation represents an uncomfortable reminder: while they seek to reduce their dependence, the Asian giant continues to set the pace for the resources that sustain the global technological economy.

Images | wirestock | ArthurHidden | aboodi vesakaran

In Xataka | In 1978 Chinese engineers visited two key US companies. Upon his return, an empire began: rare earths