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China Strengthens State Control Over Rare Earth Resources

China Strengthens State Control Over Rare Earth Resources

China now claims all rare-earth resources as state property. This rule, effective October 1, tightens control over the entire supply chain—from mining to export.

Rare earths are crucial metals used in many technologies, including electric vehicles and missiles. China dominates global production, accounting for about 70% in 2023.

This move is part of China's strategy to secure its industrial and resource sectors, especially as the U.S. tries to reduce its reliance on Chinese imports for these materials.

The regulation aims to prevent illegal mining and smelting, emphasizing state control, safety, innovation, and green development.

China's actions reflect broader tensions with the U.S., which has also restricted Chinese access to advanced chip technology. This regulation is a response to those challenges, ensuring China maintains leverage in critical materials.

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