China Issues Two Announcements Strengthening Export Controls on Rare Earth-Related Items

China's Ministry of Commerce issued two announcements on March 9 regarding the strengthening of export controls on rare earth-related items, imposing export controls on certain overseas rare earth-related items containing Chinese components as well as rare earth-related technologies.

A spokesperson for the Ministry of Commerce stated that rare earth-related items have dual-use nature, and implementing export controls on them is an international practice. Over recent years, certain overseas organizations and individuals have directly transferred or processed and re-transferred rare earth-controlled items originating from China to relevant organizations and individuals, for use directly or indirectly in sensitive areas such as the military. This has caused significant damage or posed potential threats to China's national security and interests, adversely affected international peace and stability, and undermined international non-proliferation efforts. The Chinese government's lawful imposition of controls on certain overseas rare earth-related items containing Chinese components aims to better safeguard national security and interests and better fulfill international obligations such as non-proliferation.

The spokesperson emphasized that the scope of items included in these controls is limited, and various licensing facilitation measures will be adopted. For those that comply with relevant regulations, the Chinese government will grant licenses; for exports with the end-use of emergency medical care, response to public health emergencies, natural disaster relief, and other humanitarian aid, license applications will be exempted. Additionally, considering the practical needs of stakeholders to fulfill existing commercial contracts and meet compliance requirements, a reasonable transition period has been established.

Regarding the export controls on rare earth-related technologies, the spokesperson stated that since this year, relevant departments have discovered that some overseas organizations and individuals have illegally obtained rare earth technologies from China, producing rare earth-related items and supplying them to users in sensitive areas such as the military or for use in sensitive areas like the military, causing significant damage or posing potential threats to China's national security and interests and adversely affecting international peace and stability.

The spokesperson said that to prevent related risks, the Chinese government, after careful assessment, has decided to impose export controls on rare earth-related technologies while making clear provisions regarding the activities of Chinese organizations and individuals in this regard. This is to better safeguard national security and interests, better fulfill international obligations such as non-proliferation, and also ensure the security and stability of the global rare earth industry chain and supply chain.

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