China Tightens Rare Earth Export Rules, Sparks Market Surge

BEIJING, China – On October 9, 2025, China announced new restrictions on the export of rare earth elements and related technologies, shaking up the global market and prompting a surge in share prices for U.S. mining companies. The new measures come just ahead of a key meeting between U.S. President Donald Trump and Chinese leader Xi Jinping at the APEC summit in South Korea.

The updated regulations, set to take effect on December 1, require foreign companies to obtain export licenses for any products containing over 0.1% of rare earth elements mined in China. This includes crucial technologies for extraction and processing, impacting sectors like defense and electronics that rely heavily on these materials.

Beijing‘s decision reflects its ongoing strategy to leverage its dominance in the rare earth sector amidst escalating geopolitical tensions with the U.S. and other countries. An official from the White House stated, “The new rules were announced with little notice, suggesting an effort to assert control over global technology supply chains.”

In response to the announcement, U.S. mining company MP Materials saw its stock price rise by over 6%, reinforcing its role as a key player in developing a domestic supply chain. Other U.S. firms, including USA Rare Earth and Lithium Americas, also experienced significant gains as investors sought alternatives to Chinese sources.

China currently supplies over 90% of the world’s rare earth materials, making the U.S. heavily reliant on imports for its military, electric vehicles, and high-tech manufacturing sectors. The restrictions have raised alarms over supply chain vulnerabilities and the urgent need for alternatives.

“American defense contractors need these materials to sustain production,” noted a columnist from Asia Times. “China controls the key extraction technologies, making independence crucial.”

Policymakers in the U.S. are now ramping up investments in domestic mining projects and seeking new international partnerships to support supply chain resilience. The upcoming months will be pivotal as the market adapts to these changing regulations and the ongoing fight for resource security unfolds.