Fact check on the ongoing export controls for select rare earth elements.
Earlier this week, the U.S. and China signaled a tentative easing in their trade dispute, agreeing to lower tariffs on each other’s goods for 90 days and resume negotiations. This development sparked hopes that China might also roll back its export restrictions on certain rare earth elements, introduced in early April. However, contrary to some media reports, these measures did not amount to an outright export ban. Still, the newly required licensing procedures have significantly slowed down supply chains, affecting industrial deliveries.
Although the restrictions are not explicitly targeted at any specific country, China simultaneously imposed sanctions on dozens of U.S. companies—primarily in the defense sector—blocking their access to raw materials. As of Wednesday, this special restriction has been suspended for 90 days. While the move may give the impression of a broader relaxation, it merely places the sanctioned firms under the same licensing regime as other customers. Chinese suppliers must still apply for export licenses, and approval is not guaranteed, the Ministry of Commerce clarified.
In short: There is no change to the current export controls on dysprosium, terbium, yttrium, gadolinium, samarium, lutetium, scandium, and their compounds. Chinese authorities have also pledged to tighten enforcement to prevent smuggling, with agencies coordinating new measures at a recent interdepartmental meeting (we reported).
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