As the race to manufacture faster semiconductors intensifies, China is once again tightening export controls on rare earth minerals and related mining and refining technologies.
The country’s Ministry of Commerce announced on Thursday that it had added five rare earth elements to its export control list, bringing the total to 12 to “protect national security.” The ministry has introduced export permits that foreign producers will need to apply for if they want to export rare earth minerals originating from China or products that use even a small amount of China’s mining technology.
The ministry said export licenses will not be granted to defense agencies, but those planning to use rare earth minerals in semiconductor manufacturing will be granted permits based on individual reviews. Exports for purposes of humanitarian assistance, such as public health emergencies or disaster relief, are exempt from licensing requirements.
As the world’s largest producer of rare earth minerals, China has used its position extensively to negotiate with other countries, particularly the United States, which has recently threatened to expand the range of chip-making equipment and chips that are not allowed to be exported to China. Rare earth minerals are important in a wide range of industries, from solar panels and electric vehicle batteries to chip manufacturing and aerospace.
China’s new regulations mirror the U.S. Foreign Direct Products Rule, which was expanded by the Biden administration last year in an effort to restrict exports of semiconductor manufacturing equipment from foreign countries to China. Thursday’s announcement came after the Chinese government added several rare earth minerals to its export control list in April in retaliation for President Trump’s tariffs, causing a massive global shortage.
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