China has announced new export licensing requirements for several types of rare earth magnets and elements, igniting fresh concerns over global supply chain stability.
The move impacts key materials such as neodymium and dysprosium, which are essential for electric vehicles, wind turbines, and military equipment.
“Exporters must now obtain government approval before shipping these items abroad,” the Ministry of Commerce confirmed.
Strategic Impact
China supplies over 70% of global rare earths and 90% of refined magnets, making the new rules a significant development for industries reliant on advanced components.
Countries including the US, Japan, and India are already assessing the impact, with manufacturers expected to face delays and price increases.
“This marks another reminder of China's dominance in critical materials,” said a Tokyo-based analyst.
No Timeline on Duration
Beijing has not indicated whether the rules are temporary or part of a long-term strategy, though experts link the move to broader geopolitical tensions.
Efforts to diversify supply and boost domestic production in other countries are now likely to accelerate.
