China tightens rare earth rules, extending controls to imported minerals.

Aug 2025 : Under new guidelines, producers must report data on the flow of strategic materials, including those coming from abroad for refining, as China has announced tightened rules over the mining and processing of rare earths, extending controls to imported minerals and requiring enterprises to report the flow of the strategic materials monthly.

The rules were released as guidelines on the implementation of the country’s Rare Earth Management Regulations, which took effect in October. The rules specify that China’s quota system applies not only to domestically produced materials but also to those coming from abroad for refining – a change that some fear could put further pressure on global supply. Rare earth production enterprises should, by the 10^th. day of each month, enter the previous month’s data on the flow of rare earth products into a newly established information system, according to the document issued by three departments led by the Ministry of Industry and Information Technology (MIIT).

The latest move came as China, the world’s largest rare earth producer and refiner, tightens control over the production and export of the critical materials, which are widely used in hi-tech products ranging from smartphones to electric vehicles. The document, effective immediately, provides detailed guidelines on how government agencies should manage quotas for designated companies and make the flow of rare earth products traceable.

In an interpretation of the new rules, the MIIT noted that rare earths were important strategic mineral resources, and changes in the industry meant that earlier rules were no longer suitable for current needs.

Rare earth elements are considered a critical bargaining chip for China in its trade talks with the US.

As in past years, Beijing has allocated an initial set of quotas to two rare earth producers for this year. However, this time it did not disclose details about the decision – a move seen as a deliberate strategy amid the trade war, according to mainland media reports.

“Compared to the previous quota system, which only regulated domestic raw materials, the new measures explicitly regulate imported ones, further enhancing China’s control over the rare earth supply chain”, said Li Chao, chief analyst at Guojin Securities, in a research report in February when the measures were issued for public comment.

In the first half of 2025, China imported 38,600 tons of various rare earth smelting and separation products, a year-on-year decrease of more than 12%, according to Chinese customs data.

Imports of rare earth permanent magnets – powerful permanent magnets made from rare earth element alloys that are widely used in mobile phones and robots – reached 1,056 tons in the first half of the year, up by 11% year on year.

As the country with the most abundant rare earth resources, China’s rare earth mineral production accounted for over 60% of the global total in 2023, according to data from the International Energy Agency. The country has mastered key technologies in the rare earth industry over the past few decades, increasing the scale of rare earth raw material imports from abroad while exporting deeply processed products.

From January to June, China’s cumulative exports of rare earth smelting and separation products totalled 32,000 tons, a year-on-year increase of 11.3%. Exports of rare earth permanent magnet materials reached 22,000 tons, down by 19% from the same period last year.

Team Maverick