Rare Earth Magnet Industry Insights
— Market Report
Interpretation of China's Rare Earth Export Controls
2025-09-25
Background and Purpose of China’s Rare Earth Export Controls
On September 16, 2025, China’s Ministry of Commerce issued the “Frequently Asked Questions on Dual-Use Items (Rare Earth-Related Items)” (Five Frequently Asked Questions). The guidance provides companies with clear instructions for complying with export regulations and helps alleviate market concerns regarding the “broadening of the scope of controls.”
The release demonstrates China’s commitment to transparency and precision in rare earth export control policy, providing positive signals for the standardized development of the global rare earth industry.
Scope of Dual-Use Item Export Controls
Non-Commercial Transfers of Rare Earth Items
The “Regulations on Export Control of Dual-Use Items” now cover transfers from within the country to abroad through multiple methods, including gifts, exhibitions, cooperation, and aid, in addition to traditional trade. This ensures that non-commercial transfers are also subject to control.
Traditional Trade Channels under Export Control
Exports through traditional commercial trade channels remain subject to the same control regulations, ensuring that all dual-use items, including rare earth-related products, comply with licensing and reporting requirements.
Export Licensing Options for Dual-Use Items
Individual Licenses for Rare Earth Exports
Individual licenses allow the export of a specific dual-use item to a single end-user and are valid for one year.
General Licenses for Multiple End-Users
General licenses permit exporters to ship specific dual-use items multiple times to one or more end-users within the scope, conditions, and validity period specified in the license. The maximum validity is three years.
Registration and Export Certificates for Specific Items
Certain items can be exported using a Dual-Use Item Export Certificate after fulfilling registration and information reporting obligations. In practice, these certificates are primarily used for testing, inspection, and spare parts exports.
Industry-Specific Exemptions from Export Controls
Motor Component Sector Exemptions
Rotor and stator assemblies with embedded magnets or integrated shafts/bearings are excluded from the control scope.
Sensor Sector Exemptions
Sensor components or assemblies that integrate chips and circuit boards and are injection molded are not subject to export control.
Downstream Applications Exemptions
Products such as calcined catalyst powders, phosphors containing gallium oxide, and consumer products like plastic magnetic building blocks, magnetic back panels for mobile phones, and magnetic chargers are not included in the control list.
Implications for the Global Rare Earth Industry
The updated regulations and FAQ guidance highlight China’s effort to clarify export rules and strengthen compliance, which will:
Promote industry standardization and regulatory transparency.
Provide companies with clear guidance to navigate dual-use item exports.
Mitigate market uncertainty and support the sustainable development of global rare earth supply chains.
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