The Ministry of Commerce's (MOFCOM) decision to impose export controls on rare earth-related technologies complies with international norms for managing dual-use items, the China Chamber of Commerce to the EU (CCCEU) said on Thursday, stressing that China's transparent licensing and approval mechanism will provide support to EU firms that have legitimate trade needs.
Chinese Commerce Ministry (MOFCOM) announced on Thursday that in order to safeguard national security and interests, the ministry will impose export controlson rare earth-related technologies, including rare earth mining, smelting and separation, magnetic material manufacturing, and rare earth secondary resource recycling.
In early April 2025, China had already implemented export controls on seven categories of rare earth items with dual military and civilian applications like samarium, gadolinium, and terbium, and included certain downstream products like alloys and sputtering targets in the controlled list.
"This latest announcement further expands the scope to encompass the technology sector," CCCEU said in an official statement, adding that the implementation of the new export controls is driven by multiple considerations.
From a national security perspective, rare earths are critical dual-use resources essential for manufacturing military equipment like fighter jets and nuclear submarines, as well as civilian products such as new energy vehicles and semiconductors, the statement said, emphasizing, "Enforcing export controls on rare earths and regulating their industrial development aligns with prevailing international practices for dual-use items and helps safeguard domestic supply."
On the sustainability front, China has long shouldered the bulk of global rare earth mining and processing, per the statement. According to data from the US Geological Survey, China's rare earth output accounted for nearly 70 percent of the global total in 2024.
However, past extractive practices have caused severe ecological damage in major production areas; for instance, in Ganzhou, East China's Jiangxi Province, environmental remediation costs from rare earth mining have far exceeded the profits from extraction, the statement noted.
The chamber also pointed to the intensifying domestic market competition, saying it has eroded the pricing power of Chinese rare-earth companies. "So, strengthening export controls and regulating the industry will facilitate industrial upgrading and achieve sustainable development," CCCEU said.
"In terms of the international situation, some countries, led by the US, have imposed high tariffs and technology blockades on China. By employing compliant measures to reasonably implement rare-earth controls, China can better protect its own trade interests," per the chamber's statement.
It emphasized that "amid burgeoning China-EU cooperation, EU companies need not overstate concerns about the impact of China's rare earth export controls."
Rare earths are vital raw materials for key EU industries, including new energy vehicles, wind power, semiconductors, and aerospace, with China serving as the primary import source for the bloc, per the statement.
Specifically, major manufacturing powerhouses like Germany are among China's top rare earth importers. Data from the Federation of German Industries indicates that 93.5 percent of Germany's rare earth supply depends on China.
"China's rare earth export controls do not amount to a blanket ban on exports but rather the creation of a transparent licensing and approval mechanism which can support EU companies that do not engage in activities detrimental to China's security and interests, and that pursue normal trade demands," CCCEU's statement said.
Currently, several EU companies have already secured rare earth export licenses. Since April 2025, German automakers such as BMW and Volkswagen have obtained approvals for rare earth supplies, ensuring uninterrupted production of new-energy vehicles in China and Europe, per the statement.
(Source: Global Times)