On January 6, China's Ministry of Commerce announced a total ban on exporting all dual-use items to Japan for military users, military purposes and any end uses that boost Japan's military capabilities. The ban, a response to Japan's provocative remarks on the Taiwan question and its expanding military ambitions, covers key materials crucial to Japan's defense industry, which is highly dependent on Chinese supply chains. With no short-term alternatives available, the measure deals a heavy blow to Japan's military sector, while safeguarding normal civilian trade. It sends a firm signal that China will defend its core interests and oppose Japan's militaristic tendencies to maintain regional stability.

Abstract: On December 18, 2025, China's Ministry of Commerce (MOFCOM) officially approved general export license applications for rare earths, a pivotal move that signifies the full implementation of refined management in China's rare earth export control. Against the backdrop of global efforts to stabilize industrial supply chains, this policy adopts a targeted approach, focusing on compliant European automotive and technology firms to secure stable rare earth supplies for their core production lines, including electric vehicle (EV) motors and semiconductors. Guided by the principle of "compliant end-use + precise review," the policy strictly excludes sensitive sectors, effectively addressing the concerns of downstream industries worldwide regarding supply chain stability and bolstering confidence among legitimate international partners. Prior to this announcement, the first batch of simplified export licenses was issued on December 2 to streamline customs clearance procedures, and preliminary results have been evident in an approximately 13% month-on-month growth in China's rare earth exports in November. This transition marks a shift from case-by-case approval to a more efficient and predictable "long-term controllable allocation" mechanism, characterized by "precision easing for compliant trade and strict supervision for sensitive areas." For global industries reliant on rare earths, particularly the booming new energy and advanced manufacturing sectors, the refined management delivers tangible benefits: it shortens the average approval time for single shipments from 10 working days to near real-time processing, reducing warehousing and logistics costs by around 30% for exporters and minimizing production disruption risks for downstream clients. Notably, the policy strengthens full-industry-chain supervision through measures like the "0.1% rule," which blocks circumvention loopholes by requiring Chinese approval for exports of foreign products containing over 0.1% value of Chinese-origin rare earths or produced using Chinese rare earth technologies. As a key and responsible participant in the global rare earth industry, the company fully supports this policy, which aligns with its commitment to transparent, compliant, and sustainable cooperation. Moving forward, the company will leverage China's comprehensive rare earth industrial chain advantages—spanning smelting, separation, and deep processing—to provide high-quality products and professional services to compliant global partners. It will also collaborate with international stakeholders to drive technological innovation, enhance resource utilization efficiency, and jointly build a resilient, mutually beneficial global rare earth industrial ecosystem.

Rare earths, hailed as the "vitamin of industry", have become a focal point of global competition following four major cross-country events in a short span. The U.S.-led "Critical Minerals Partnership Alliance" was launched to build a "de-China" rare earth supply chain via resource and technology cooperation. Vietnam subsequently passed a law banning rare earth raw ore exports starting January 1, 2026, seeking to upgrade its industrial chain and boost global bargaining power with its 3.5 million tons of reserves, though industry experts note the ban will have limited short-term global impact due to Vietnam’s technical and environmental bottlenecks. Meanwhile, China’s two leading rare earth enterprises—Northern Rare Earth and China Rare Earth—gained policy and market benefits, with Northern Rare Earth drawing passive investment after joining the Shanghai Stock Exchange 50 Index and China Rare Earth strengthening market confidence via standardized transaction plans. These gains are underpinned by China’s dominant position in the global rare earth sector, holding 49% of global reserves, controlling nearly 90% of smelting and separation capacity, and dominating strategic heavy rare earth supply. China’s Ministry of Foreign Affairs emphasized adherence to market principles to maintain supply chain stability, noting its short-term irreplaceable advantages. Essentially, the rare earth competition has evolved into a contest of strategic endurance and industrial competitiveness, with core technologies and a complete industrial chain being the key to seizing the initiative amid surging demand from new energy and high-tech industries.

Recently, the price of yttrium oxide has surged 44 times in half a year, jumping from $6 per kilogram to $270 per kilogram, making it a focal point of global technological and geopolitical rivalry. The core drivers are the supply-demand imbalance: the explosive demand from the global high-tech sector has led to a 33% supply gap, while China’s inclusion of yttrium oxide in its export control list—given its 85% share of global production—has triggered a structural supply contraction. The game between China and the United States centers on the discourse power in the rare earth industry chain; the U.S. has a high level of dependence and faces difficulties in breaking the predicament in the short term. With breakthroughs in purification technology, the layout of recycled production capacity, and the leadership in formulating international standards, China has built a full-industry-chain advantage and significantly increased its share in rare earth value distribution.

Samarium oxide (Sm₂O₃) is the core raw material for high-performance samarium-cobalt (SmCo) permanent magnets. This paper briefly introduces the basic properties, preparation process and resource distribution of samarium oxide, emphasizes its three core roles in the preparation of SmCo permanent magnets—supplying samarium element through reduction conversion, regulating crystal structure and magnetic domain characteristics, and optimizing temperature stability and corrosion resistance—summarizes the main application scenarios of SmCo permanent magnets in aerospace, electronic information, high-end equipment manufacturing and other fields, discusses the development trends (such as process optimization and doping modification) and challenges (such as scarce resources and high cost) of samarium oxide and SmCo permanent magnets, and looks forward to their future application prospects in promoting the upgrading of high-end manufacturing.Samarium oxide (Sm₂O₃) is the core raw material for preparing high-performance samarium-cobalt (SmCo) permanent magnets. SmCo permanent magnets exhibit excellent performance and are widely used in high-end fields such as aerospace and electronic information. The purity and preparation process of samarium oxide directly determine the upper limit of the magnetic properties of SmCo permanent magnets.

Rare earth elements (REEs), often called "industrial vitamins" for their irreplaceable role in high-tech, defense, and green energy sectors, have become a pivotal geopolitical tool bridging two major global crises: escalating Sino-Japanese tensions over Taiwan and the intricate dynamics of Ukraine’s peace negotiations.In November 2025, Japanese Prime Minister Sanae Takaichi’s controversial claim that a "Taiwan crisis could trigger Japan’s collective self-defense" drew fierce backlash from Beijing. China responded by submitting the issue to the UN and imposing targeted economic countermeasures, laying bare Japan’s critical vulnerability: the nation relies on China for 90% of its REE imports, particularly heavy rare earths like dysprosium—essential for advanced electronics, EV motors, and military hardware. Haunted by the 2010 Diaoyu Islands dispute, where China’s REE export halt severely disrupted Japan’s supply chains, Tokyo has accelerated "de-China" efforts: partnering with France on REE smelting, exploring seabed mining near Minamitorishima, and securing alternatives from Kazakhstan and India.Parallelly, Ukraine’s peace talks are intertwined with REE geopolitics via a U.S.-backed deal: Washington gains access to Ukraine’s Zaporizhzhia REE deposits (rich in dysprosium and terbium) in exchange for sustained military aid. This move aims to weaken China’s dominance in the global REE supply chain—accounting for over 80% of global processing capacity—and secure resources for U.S. tech and defense. Meanwhile, Russia is investing $6 billion in a Siberian REE industry to reduce its own reliance on Chinese supplies.REEs serve as a unifying strategic thread across both crises. For Sino-Japanese relations, 2025 tensions follow a pattern of REE-driven friction: 2010’s export controls and 2025’s regulatory tightening have forced Japan into urgent diversification. For the U.S.-Ukraine-Russia triangle, REEs have become a bargaining chip in military and diplomatic maneuvering.As nations race to secure supplies, build domestic processing capabilities, and forge resource alliances, REEs have transcended their industrial function to shape international alliances and conflicts. Their mastery is no longer just an economic priority but a defining factor in 21st-century geopolitical supremacy, quietly reshaping the global power balance amid ongoing crises.

China’s Ministry of Commerce recently announced the suspension of planned export control measures on additional rare earth elements, a pragmatic adjustment that balances national security and global industrial needs. This move is by no means a reversal of its rare earth governance strategy but a refined optimization based on practical industrial realities.​Prior to this, China had built a full-chain regulatory system since October 2025, covering rare earth resources, core technologies and related equipment. The policies target preventing dual-use rare earth products from flowing into sensitive military fields and fulfilling international non-proliferation obligations. Notably, China’s controls have always focused on regulating rather than banning exports. It has streamlined approval processes for legitimate civilian trade, with over 60% of EU enterprises obtaining export licenses smoothly in the first half of 2025.​As the world’s top rare earth producer accounting for nearly 70% of global output and over 90% of processing capacity, this adjustment responds to global concerns about supply chain stability. Rare earths are indispensable for electric vehicles, semiconductors and wind turbines. The suspension eases worries of international manufacturers, especially European firms relying on stable supplies for green transition, allowing them to better plan production and investment.​China’s rare earth governance also adheres to environmental sustainability. Major production areas have invested heavily in ecological restoration to offset the environmental impact of mining and processing. Internationally, China has set up communication channels with partners like the EU to accelerate license reviews.​Looking ahead, China will maintain precise and targeted rare earth regulation. The suspension of new controls demonstrates its commitment to stable global supply chains. For foreign enterprises, complying with China’s regulatory framework and utilizing convenient approval channels will be key to securing stable supplies.

On the occasion of New Year's Day 2025, Ganzhou Nanocrystal New Material Co., Ltd. extends sincere wishes and gratitude to all employees, partners, customers and all walks of life. Looking back on the past year, the company focused on core businesses, relied on Ganzhou's rare earth resource advantages, overcame technical difficulties through technological innovation, and achieved breakthroughs in capacity, quality and market layout. Looking forward to 2025, the company will adhere to the philosophy of "Integrity, Innovation, Excellence, and Win-Win", deepen the new materials track, strengthen R&D capabilities, optimize product structure, and strive to become a benchmark enterprise in the segment, contributing to industrial upgrading and local economic development.As time passes and the seasons change, we bid farewell to the old and welcome the new amidst a vibrant atmosphere of renewal. On this joyous occasion of New Year's Day, Ganzhou Nanocrystal New Material Co., Ltd. extends its most sincere New Year wishes and heartfelt gratitude to all employees, partners, customers, and friends from all walks of life! Wish you a happy New Year, a harmonious family, smooth career progress, and great achievements!

This summary outlines the transformative shifts in the global rare earth industry driven by policy adjustments, technological advancements, and surging downstream demand. In November 2025, China suspended six rare earth export control measures (valid until November 2026), resolving overseas inventory shortages and triggering a 15% price spike—with praseodymium-neodymium oxides rising from RMB 500,000 to 557,500 per ton. Complementing this, MIIT’s October 2025 compliance supervision plan cracks down on unlicensed production, concentrating capacity in leading enterprises and reinforcing supply-demand tightness. A 5.8% supply gap for praseodymium-neodymium oxides in 2025 (extending to 4.6% in 2026) further supports price stability. Technologically, breakthroughs in recycling—such as GEM’s 95.2% recovery rate production line and China Rare Earth’s 15,000-ton/year recycled project—have alleviated 15% of supply pressure, with recycled rare earths projected to reach 25% of the market. Demand is booming: global new energy vehicle penetration hit 35% amid expanded subsidies and the EU’s 2035 fuel car ban, while MIIT’s 2027 target of 100,000+ mass-produced humanoid robots drives explosive growth in high-performance neodymium-iron-boron demand. The industry chain presents multi-dimensional opportunities: short-term (3-6 months) policy dividends benefit leaders like Northern Rare Earth (70%+ light rare earth quotas, 50%+ export growth) and JLMAG (Tesla robot magnet supply deal); mid-term (1-2 years) sees NdFeB CR4 rising to 42% and 17.2% CAGR for high-performance variants; long-term (3-5 years) emerging sectors push 2030 global rare earth demand to 300,000 tons. Backed by these tailwinds, the industry is poised for a 3-year golden period, with resource-rich, tech-driven enterprises leading growth.

On November 1, 2025, the U.S.-China trade agreement on key minerals drew global attention, as China announced general export licenses for rare earths, gallium, germanium, antimony and graphite—lifting 2022-2025 export controls and suspending stricter October 2025 measures for a year. This adjustment reflects China’s sophisticated policy logic balancing national security, industrial development and global supply chain stability.​China’s strategic mineral regulation has evolved systematically: 2022 controls safeguarded resource security; April 2025 measures focused on high-end manufacturing-critical medium/heavy rare earths; October 2025 rules established full-chain supervision. The new general license system, however, is not a policy reversal but flexible optimization—retaining regulatory power while simplifying legitimate civil-use procedures, aligning with international dual-use item control practices.​Market responses validated policy rationality. Despite supply expectations, November 2025 medium/heavy rare earth prices rose (dysprosium oxide: 1.5625M yuan/ton; terbium oxide: over 6.6M yuan/ton) due to scarcity and booming high-end manufacturing demand. China’s rare earth ETFs grew 300% monthly, while overseas concept stocks corrected—underscoring China’s unshakable industrial edge (90% global smelting capacity, 1/3 lower costs via cascade extraction).​Looking ahead, China’s "controlling while opening up" principle aims for a "multi-polar supply + Chinese core" global chain. With the revised Mineral Resources Law in effect, China will advance resource circular utilization and 3nm rare earth tech, contributing to a more stable, mutually beneficial global strategic mineral ecosystem.​