China’s Position on Rare-Earth Export Controls
China’s Ministry of Commerce has come forward to clarify its recent rare-earth export controls, framing them as lawful national security measures rather than blanket bans. In a Q&A session posted on social media platform X, a ministry spokesperson explained that the October 9th action was taken in coordination with the General Administration of Customs as part of ongoing efforts to refine China’s export control system.
The spokesperson emphasized that implementation will focus on licensing rather than prohibition. Reviews will be conducted according to law, and licenses will be granted where applications meet the requirements. The ministry is also considering facilitation measures, including potential general licenses and license exemptions, to support legitimate trade.
The Strategic Importance of Rare Earths
Rare earths represent a group of 17 elements that play crucial roles in modern technology. They’re essential for permanent-magnet motors in electric vehicles and wind turbines, defense electronics, and various high-tech equipment. China’s dominance in this sector gives these export controls significant weight in global supply chains.
Beijing accounts for approximately 70% of global rare-earth production and about 90% of processing and refining capacity. This means that even when mining or final manufacturing occurs elsewhere, licensing changes in China can create downstream effects throughout global supply chains.
The spokesperson specifically cited the military relevance of medium- and heavy rare earths as justification for the controls. They noted that partners were notified in advance through established bilateral export-control dialogue mechanisms.
Responding to U.S. Trade Actions
The ministry also addressed recent comments from President Donald Trump about additional tariffs on Chinese imports and prospective U.S. export controls on critical software. The spokesperson characterized the American position as a “double standard,” pointing to the breadth of U.S. control lists and de minimis rules as examples of what they see as Washington’s expansive approach.
At the same time, the ministry emphasized that China “does not want” a trade war but “is not afraid” of one. They urged a return to established consultation channels to manage differences on a reciprocal basis. The spokesperson indicated China would take “resolute measures” to protect its interests if the U.S. proceeds with its announced actions.
Additional Trade Measures
Separate comments from the ministry criticized U.S. port fees scheduled to take effect on October 14th for certain Chinese-linked vessels. MOFCOM described these fees as unilateral and inconsistent with WTO rules and bilateral agreements.
In response, China announced it will levy special port fees on U.S.-linked vessels under domestic regulations. The ministry characterized this as a defensive countermeasure aimed at protecting the rights of Chinese companies and maintaining fair competition in shipping.
The ministry spokesperson assessed that the broader supply-chain impact of China’s rare-earth measures would be “very limited.” They explicitly told commercial users that compliant civilian exports “can get approval,” suggesting that legitimate business activities will continue to be supported through the licensing process.
This approach appears designed to maintain China’s strategic position in rare earths while minimizing disruption to global markets and keeping communication channels open for further dialogue.
