China introduced new regulations on Friday governing the mining and processing of rare earth elements, extending oversight to cover imported minerals as well.
The regulations issued by China’s Ministry of Industry and Information Technology (MIIT) cover both domestically sourced rare earths and those imported for processing. Under the new rules, companies are required to adhere to strict quotas for different minerals and must obtain official approval to engage in rare earth activities. Non-compliance will result in legal consequences and a reduction in the allocated quotas.
The latest action comes as China, the world’s leading producer and refiner of rare earths, strengthens its control over the production and export of these vital materials, which are essential for high-tech products like smartphones and electric vehicles.
The directive, effective immediately, outlines comprehensive instructions for government agencies on managing quotas for approved companies and ensuring traceability of rare earth product flows. As stipulated by the document issued by three government bodies headed by the MIIT, rare earth production companies must input the previous month’s data on the movement of rare earth products into a newly created information system by the 10th of each month.
Rare earth elements are regarded as a vital negotiating tool for Beijing in its trade discussions with Washington. Earlier this year, the U.S. imposed stricter regulations on access to advanced computing semiconductors. In response, China began increasing restrictions on the export of 17 rare earth elements, such as germanium, gallium, and titanium.
China, which holds the world’s largest reserves of rare earth resources, produced over 60% of the global supply in 2023, based on figures from the International Energy Agency. During the first half of 2025, the country imported 38,600 tons of rare earth smelting and separation products, a decline of more than 12% compared to the same period last year, according to data from Chinese customs.
Meanwhile, between January and June, China exported a total of 32,000 tons of rare earth smelting and separation products, marking an 11.3% increase compared to the same period last year.
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