China to limit rare earth exports to U.S. defense firms
China is preparing a new export control system to prevent rare earth metals from reaching U.S. defense companies, according to The Wall Street Journal. The plan aims to allow continued exports for civilian use while restricting access for military applications.
The system will resemble the U.S. end-user verification program introduced in 2007, under which Chinese firms can obtain a general license to export certain goods without applying for approval for each shipment. However, permissions may be revoked, causing occasional disputes in Beijing, News.Az reports, citing foreign media.
This measure comes after China lifted earlier bans on exports of gallium, germanium, antimony, and superhard materials to the U.S., initially imposed in December 2024. On November 6, China also suspended, for one year, restrictions on dual-use goods for 31 American companies in the defense and aerospace sectors following a meeting between President Trump and President Xi Jinping in South Korea.
The new mechanism is intended to balance compliance with U.S. export conditions while maintaining Beijing’s control over critical strategic materials.
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