China has rolled out fresh interim measures to regulate its rare earths sector, according to a report on Friday, August 23, from ABC News. The move underscores Beijing’s efforts to tighten oversight of mining, smelting, and separation activities in a market it overwhelmingly dominates.

The new rules, published by the Ministry of Industry and Information Technology, apply not only to rare earths mined within China but also to those imported into the country for refining. Key provisions include:

Companies handling rare earths essential for electric vehicles, wind energy, and defense industries must secure government approval.

Firms must comply with state-assigned production quotas.

Accurate reporting of the volume of rare earth products managed and processed is mandatory.

Violations will attract penalties, including possible cuts to future quotas.

Trade Tensions with the US
The measures come against the backdrop of ongoing U.S.-China trade frictions. Earlier this year, Washington tightened restrictions on China’s access to advanced computing semiconductors. In response, Beijing intensified controls on the export of its 17 rare earth elements, adding germanium, gallium, and titanium to the list.

In April, following new U.S. tariffs announced by President Donald Trump, China expanded its permitting requirements to include seven additional rare earths. Despite holding nearly half of the global reserves, China imports a significant share of its rare earth feedstock from Myanmar for processing and re-export.

With global technology manufacturers anxious about possible supply disruptions, the standoff pushed both nations back to trade negotiations. The U.S. later eased some restrictions, enabling its companies to scale up chip sales to China. Soon after, Beijing accelerated approvals for rare earth exports as a countermeasure.

Currently, China’s dominance remains unmatched—it processes about 90 percent of the world’s rare earths and accounts for nearly 70 percent of global mining output.