China Tightens Rare-Earth Metal Exports, Raising Global Tech and Geopolitical Stakes

China has tightened export controls on rare-earth metals, a move that carries major global economic and geopolitical implications. Rare-earth metals, a group of 17 critical elements used in electric vehicles, mobile phones, semiconductors, wind turbines and defense equipment, are predominantly produced by China, which processes over 90% of the world’s supply. In October 2025, China’s Ministry of Commerce issued Announcement No. 61, imposing export restrictions on five additional metals—holmium, erbium, thulium, europium and ytterbium bringing the total number of controlled metals to 12 out of 17. These restrictions, effective from 1 December 2025, require foreign companies to obtain special licenses, which may be denied if the materials are intended for military use.