China has announced new restrictions on the export of rare earths and high-tech equipment, targeting foreign defense companies and semiconductor manufacturers. The measures are designed to tighten control over critical materials and technologies used in the military and high-tech industries.

China’s Ministry of Commerce has added five rare earths to the control list: holmium, erbium, thulium, europium and ytterbium. In addition, dozens of types of equipment and processing technologies have been restricted, and foreign companies will need to obtain special licenses to export them.

The new rules will take effect on November 8, 2025, and the provisions for foreign rare earth producers will take effect on December 1. They are being introduced amid calls from US lawmakers to tighten controls on the export of equipment for chip production to China.

China currently produces more than 90% of the world’s processed rare earths and rare earth magnets, which are critical for electric vehicles, aircraft engines and military radars. Exports of 12 of the 17 rare earths have already been restricted, and the new restrictions also apply to advanced semiconductors, including 14-nanometer chips, memory chips with 256 layers and above, and the equipment to produce them.

Analysts say China’s tightening controls could have a significant impact on the global high-tech market, especially ahead of a planned summit between the US and Chinese presidents in South Korea. Meanwhile, shares of Chinese companies involved in the mining and processing of rare earths have already risen by 9-10% since the new measures were announced.

China's Ministry of Commerce has clarified that foreign users of defense products will not be granted export licenses, while applications related to advanced semiconductors will be reviewed on an individual basis. Thus, China seeks to maintain a strategic advantage in key technology sectors while controlling the influence of foreign companies in critical markets.