Today, China's Ministry of Commerce expanded its dual-use item list for export control purposes, by adding rare earths, rare earth-related technologies, raw materials, alloys, and processing equipment to the list, further tightening its export controls over the rare earth supply chain.

New export controls

According to MOFCOM's announcements, the controlled items span three main categories:

• Some rare earth metals (holmium, erbium, thulium, europium, ytterbium), alloys,  oxides, mixtures, and compounds, effective November 8, 2025.
• Rare earth extraction, processing, magnet manufacturing technologies and related technical data, effective October 9, 2025.
• Specific rare earth production and processing equipment and rare earth raw materials and reagents, effective November 8, 2025.

As a result, exporters of the listed items must obtain a license from MOFCOM. The new decisions effectively extend rare earth export controls, covering not only physical goods, but also services, technical transfers, and data.

More details of the controlled items

MOFCOM added the following rare earth processing technologies and technical data to the dual-use item list:

• technical know-how and data (such as, drawings, process specifications, parameters, programs, simulation data) related to:
  • rare earth mining.
  • smelting and separation processes.
  • rare earth metal refining.
  • magnetic material manufacturing, including samarium–cobalt, neodymium–iron–boron, and cerium magnets.
  • recycling and reprocessing of rare earth resources.
• technology and methods for assembling, commissioning, maintaining, repairing, or upgrading rare earth production lines for mining, smelting, separation, refining, magnetic material manufacturing and recycling.

MOFCOM also added 26 types of rare earth equipment to the dual-use item list, including the following:

• separation & extraction equipment including centrifugal extractors, impurity removal systems, ion adsorption equipment.
• thermal & chemical processing equipment including rare earth resistance furnaces, and crystallization reactors.
• metal production equipment including electrolysis equipment and cells.
• crystal growth furnace.
• magnet manufacturing equipment, including multi-wire cutters, laser cutters, grinders.
• Large shaft kilns for rare earth recycling.

In addition, the following raw materials are also added to the dual-use item list:

• rare earth ores, including bastnaesite (fluorocarbon cerium ores), monazite, and ion-adsorption clays.
• flotation reagents containing hydroxamic acids or phosphate esters.
• extractants, including P507, P204, naphthenic acid, N235, and C272.

Trade data of rare earths

The new export controls may further restrict China's rare earth exports, which have been a point of contention with major trading partners such as the U.S. and EU.

In April, China imposed export controls on seven categories of medium and heavy rare earths, samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related items, requiring special licenses for all exports.

The export control measures came amidst escalating trade tensions with Washington, and quickly became the focal point of bilateral trade talks in June and September.

The export controls initially led to a sharp drop in rare earth exports in April, but exports rebounded in both quantity and value in June. July and August data witnessed a decline in export volume, while the value of exports continued to rise. (It is worth noting that the data may contain non-controlled items.)

Factoring in rare earth derivative products, both the volume and value of rare earth and related product exports increased significantly in July and August, surpassing the pre-control levels. As shown in the graph below, this recovery followed a two-month slump in April and May, which was caused by the implementation of the April export control measures.

A key point of contention has been China's controls over rare earth magnets, which are indispensable components in numerous modern technologies, notably in defense and aerospace, electric vehicles, and high-tech industrial sectors. In this regard, China’s exports of rare earth magnets (under tariff code 85051110) also show a quick rebound since they bottomed out in May, with now both the volume and value exceeding the pre-control levels, as shown in the graph below. 

Breaking down the export flows by specific countries, China's rare earth magnet exports to key destinations, Germany, South Korea, and Vietnam, all grew in August, with the exception of the U.S., which dropped by 4.7% in volume.

The same pattern is witnessed in the year-on-year growth. Exports to Germany, Vietnam and South Korea increased by 19.8%, 47.3% and 22.3% respectively. In contrast, shipments to U.S. declined by 11.9%.