U.S. media is very concerned about China's new management policy on rare earths.

China released new temporary measures on Friday, strengthening control over the mining and processing of rare earths, which are used in many high-tech products, including electric vehicles, smartphones, and fighter jets.

The rules issued by the Ministry of Industry and Information Technology on Friday apply to both rare earths produced in China and those transported to China for refining.

They require companies to comply with quotas for various minerals. Companies must obtain government approval to process rare earths and must accurately report the quantity of rare earth products being processed. Violators will face legal penalties, and their rare earth quotas will also be reduced.

Here's what you need to know.

Why is China tightening its control over rare earths

These 17 rare earth elements, including minerals such as germanium, gallium, and titanium, are not actually rare. However, it is difficult to find sufficient concentrations to make their mining worth the investment. China has been gradually tightening restrictions on the export of these materials, partly in response to U.S. controls on its access to advanced American technology.

In April this year, just after President Donald Trump announced tariffs on dozens of U.S. trade partners, Beijing announced licensing requirements for an additional seven rare earths: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, citing the need to "better safeguard national security and interests, and fulfill global non-proliferation obligations."

These restrictions have raised concerns that manufacturers in the United States and elsewhere may lack essential materials needed for production, a problem in Sino-U.S. relations. Trade negotiations. In response to U.S. concessions on access to computer chip design software and jet engines, Beijing announced in June that it would expedite the approval of rare earth exports.

In July this year, China's National Security Bureau stated that it was cracking down on suspected smuggling of rare earth materials, saying these materials threaten national security, indicating that Beijing is taking action to impose more control.

China's dominant position in the rare earth industry

Over the past few decades, China has dominated the processing of rare earths. It now supplies nearly 90% of the world's rare earths, although it only mines about 70% of these materials.

China has nearly half of the world's rare earth reserves, but also imports large amounts of rare earths from neighboring Myanmar for processing and export.

Because China controls the refining technology for rare earth elements and bans the export of this technology, it almost monopolizes the refining and separation of rare earth elements.

In 2024, 70% of the rare earths used in the United States came from China; 13% from Malaysia; 6% from Japan, and 5% from Estonia. According to data from the U.S. Geological Survey, some elements obtained from non-Chinese intermediate sources come from concentrates processed in China and Australia.

China has agreed to issue some rare earth export licenses, but not those for military use, and its supply remains full of uncertainties.

The rules released on Friday clarified stricter controls on licenses for rare earth trading companies and concentrated control over mining, export, and processing. They also imposed stricter environmental standards on the industry.

Trump has made it a priority to reduce U.S. dependence on Chinese rare earths while pushing Beijing to ease its controls.

China has chosen to increase or decrease the approval process as needed, while strengthening overall control over the industry.

The new regulations do not specify production and export quotas or specific rare earth elements, but strongly indicate that Beijing is seriously imposing stronger control over the industry.

Original: www.toutiao.com/article/1841227849105484/

Statement: This article represents the views of the author.