China on Thursday announced export controls on rare earth production technology as it looks to cement its dominance in the sector amid intensifying rivalry with the United States.
“Exporters should strengthen their compliance awareness,” the Ministry of Commerce said in an online statement. “They must understand the primary uses of their exports and judge whether they are dual-use items.”
The decision will take effect immediately, according to the statement.
China is the world’s leading producer of rare earth elements, which are essential to the production of everything from electric vehicles and smartphones to spacecraft.
Rare earths have also become a key issue in the ongoing US-China trade war in recent months, with Beijing using its influence over rare earth supplies as leverage in its negotiations with Washington.
The country accounts for about 70 per cent of global rare earth mining and over 90 per cent of global processing capacity for the more valuable heavy rare earth elements.
