There’s been a lot of talk about Beijing’s latest export restrictions—Rawmaterials.net takes a closer look.
Amid the escalating trade conflict with the United States, China tightened its export controls on critical raw materials. In response to new U.S. tariffs on foreign goods—particularly steep in the case of Chinese products—Beijing has imposed export controls for certain rare earth elements since April 4.
The affected materials include the rare earth elements dysprosium, terbium, yttrium, gadolinium, samarium, lutetium, and scandium, along with their various compounds and forms. The Chinese government justifies the move on national security grounds, citing the use of these materials in both civilian and military industries. The regulations are not aimed at any specific country but apply universally to all export destinations.
No Formal Export Ban, but Rare Earth Exports Are De Facto on Hold
However, contrary to some media reports, this licensing requirement does not constitute a blanket export ban. There has been no official directive to completely halt exports. Rather, the new rules give China the legal and procedural means to block specific shipments—particularly if authorities believe their intended use could run counter to national interests.
While no formal stop is in place, exports are effectively on hold for now: processing the newly required export licenses is expected to take up to 45 business days as it did in earlier episodes. The potential impact can be illustrated by the case of gallium, which has been subject to similar regulations since August 2023. It took several months for exports to resume after the initial disruption.
Chinese gallium export in the aftermath of the export controls
Photo: Aqsa Adha via Canva, montage rawmaterials.net