China produces over 90% of the world’s processed rare earths, and on Oct. 9, 2025 its Ministry of Commerce announced sweeping new export controls. The measures expand restrictions on exporting processing technology for rare-earth magnets and clarify that licences will not be granted to foreign defence users, while applications related to advanced semiconductors will only be approved case by case【828021681745【82802168174550†L250-L258】.

The move follows calls from U.S. lawmakers for tighter chip-export bans and comes weeks ahead of an expected meeting between President Donald Trump and China’s Xi Jinping, giving Beijing bargaining power【82802168174550†L213-L219】. The extraterritorial rules apply to technology used to make 14-nanometre chips or memory chips with 256 layers or more and will require licences for equipment to recycle rare earths【82802168174550†L250-L258】【82802168174550†L237-L239】. Shares in major Chinese rare-earth firms surged after the announcement【82802168174550†L244-L247】.

South Korea, home to chipmakers Samsung and SK Hynix, said it is studying the impact of the new rules, while China said some facilitation measures would accompany the restrictions to ease supply concerns【82802168174550†L264-L268】【82802168174550†L281-L283】. The rules restricting technology will take effect on Dec. 1, while others are effective immediately【82802168174550†L241-L243】.