China's Refined Rare Earth Export Licensing in Effect

December 22, 2025 – As a pivotal player in the global rare earth industry, we note with great attention the recent announcement from China's Ministry of Commerce (MOFCOM) on December 18th regarding the approval of general export license applications for rare earths. This milestone marks the official implementation of refined management in China's rare earth export control, demonstrating a balanced approach of safeguarding strategic resources while facilitating compliant international trade, which will significantly contribute to the stability and sustainability of the global rare earth supply chain.

According to the MOFCOM announcement, the approved general licenses are specifically targeted at compliant European automotive and technology enterprises, ensuring a steady supply of rare earth materials for their production lines such as electric vehicle (EV) motors and semiconductors. The core principle of this policy adjustment is "compliant end-use + precise review," with strict exclusion of sensitive fields. This targeted measure effectively addresses the concerns of global downstream industries about supply chain stability, providing a "reassurance" for international partners engaged in legitimate business operations.

Prior to this announcement, the first batch of simplified export licenses was issued on December 2nd, streamlining customs clearance procedures for compliant shipments. Data shows that China's rare earth exports in November increased by approximately 13% month-on-month, a positive signal reflecting the initial effectiveness of the refined regulatory measures. Together, these developments indicate that China's rare earth export control has entered a new phase characterized by "precision easing for compliance and strict supervision for sensitivity," moving from "case-by-case approval" to a more efficient and predictable "long-term controllable allocation" mechanism.

For global industries reliant on rare earths – particularly the fast-growing new energy and advanced manufacturing sectors – this refined management brings substantial benefits. The general license system significantly reduces operational costs and delivery lead times for enterprises: the average approval time for single shipments has been shortened from 10 working days to near real-time processing, lowering warehousing and logistics costs by around 30% for exporters and minimizing the risk of production disruptions for downstream clients. As a leading rare earth enterprise committed to global cooperation, we have already initiated the relevant procedures to leverage the general license framework, enabling us to better serve our long-term European partners with more efficient and stable supply services.

It is important to emphasize that China's refined rare earth export management is rooted in the principle of safeguarding national strategic resources and promoting high-quality industrial development. While facilitating compliant trade, the policy also strengthens supervision over the entire industrial chain, including the implementation of the "0.1% rule" – requiring Chinese approval for exports of foreign products containing more than 0.1% value of Chinese-origin rare earths or produced using Chinese rare earth technologies. This measure effectively blocks "circumvention procurement" loopholes, ensuring that rare earth resources are used for legitimate and constructive purposes.