Jing Ji Guan Cha Wang·2025-10-10 10:55Core Viewpoint - China's Ministry of Commerce has announced an upgrade in rare earth export controls, shifting from "item control" to "technology control," emphasizing the dual-use nature of rare earth materials and technologies [1][2][5]. Group 1: Export Control Changes - The new regulations prohibit the export of technologies related to rare earth mining, refining, and manufacturing without permission, expanding the definition of "export" to include various forms of transfer such as knowledge transfer and joint research [2][3]. - A "long-arm jurisdiction" mechanism has been introduced, requiring foreign organizations to obtain export licenses from China before exporting items containing Chinese rare earth components [2][3]. Group 2: National Security and Compliance - The measures are a response to illegal acquisition of rare earth technologies by foreign entities, which pose threats to China's national security and international stability [3][5]. - The export controls are not blanket restrictions; humanitarian-related exports will be exempt from licensing requirements [3][4]. Group 3: Global Market Position - China dominates the global rare earth supply chain, holding 48% of the world's rare earth reserves and contributing 69% of global production [4][6]. - The country possesses over 90% of rare earth refining and separation technology, achieving a purity level of 99.99%, which is a significant advantage over Western countries [4][6]. Group 4: Impact on Related Companies - Following the announcement, several companies in the rare earth sector saw significant stock price increases, indicating market optimism regarding the implications of the new regulations [7].