[News] China’s New Rare Earth Rules Reportedly Target Experts, Curb Overseas Travel to Prevent Leaks

While Beijing has yet to approve exports of certain rare-earth magnets used in U.S. fighter jets and missile systems, it is tightening control over the industry at a deeper level. According to the Wall Street Journal, China is now requiring firms to register technical staff and collect their passports—underscoring its use of export restrictions as a geopolitical tool.

The report suggests that China’s Ministry of Commerce has recently asked rare-earth firms to submit detailed lists of specialists—including their expertise, education, research background, and personal info—aiming to closely monitor them and prevent foreign travel or potential information leaks.

The lists, as per the Wall Street Journal, cover both upstream workers involved in processing rare earths and downstream staff who turn them into magnets used in cars, wind turbines, drones, and fighter jets.

China’s Rare Earth Export Controls: Current Landscape

China, the world’s top miner and processor of rare earths—and producer of about 90% of rare-earth magnets—has tightened its grip as trade tensions rise during the past months.

As per Reuters, China announced export restrictions on seven key rare earth elements in early April. Starting April 4, seven categories of medium and heavy rare earths—including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related products—have been added to the export control list, according to a statement from the Ministry of Commerce.

Then in late May, China rolled out a national tracking system for its rare-earth magnet industry, which requires producers to report additional details online, including trade volumes and customer names, according to Reuters.

Currently, the Wall Street Journal reports that China is limiting rare-earth export licenses for U.S. automakers and manufacturers to six months, aiming to keep options open amid rising trade tensions. However, it continues to strictly block exports of specialized rare earths like samarium, which are used in military systems, as per Reuters.

Read more

• [News] U.S. Reportedly Mulls Tariff Pause Extension as China Talks Bypass Military Rare Earths
• [News] China’s Rare Earth Exports Surge 23% in May, Reaching 1-Year High Despite Controls

(Photo credit: GRINM)