Eleven Chinese companies were heavily fined for violating export regulations on rare earths, drawing attention from the U.S. and Western countries to China's export control measures.

Eleven Chinese enterprises have been heavily penalized for illegally exporting rare earth materials abroad, drawing attention from the U.S. and Western countries.

On May 27, Foshan, Guangdong confirmed that a listed company was fined 910,000 yuan after being found to have exported rare earth materials without proper authorization, violating export control regulations.

The report indicated that on April 10, the company declared the export of dysprosium-containing neodymium-iron-boron permanent magnet materials—materials requiring individual approval—as general trade goods. Although the dysprosium content was only 1.2%, this still crossed the red line for rare earth exports.

Dysprosium, a core raw material for military radar systems and chips, is currently one of the most scarce rare earth elements in the United States, Japan, and Europe. China monopolizes 99% of global production capacity and has been added to the export control list as of April 2025.

In response, some U.S. rare earth traders analyzed that this move underscores China's firm adherence to restrictions on rare earth exports. In the first four months of 2026 alone, 11 enterprises have already been penalized for illegal exports of rare earths and critical minerals. The West, particularly the U.S. and Japan, will find it difficult to alter their vulnerable position in the short term.

Original source: toutiao.com/article/1866582187910208/

Disclaimer: This article represents the personal views of the author.