These new controls come on the heels of China’s announcement of major new export controls on rare earth elements, lithium-ion batteries, and synthetic diamonds on September 28, 2025. The announcement occurred at 12:51 JST in Shanghai, marking a strategic move by the Chinese government to enhance oversight of these critical materials. The updated details of the announcement were shared later the same day at 19:38 JST.
The new regulations primarily focus on export of rare-earth materials. These materials form the foundation of many high-tech and advanced industries such as electronics and renewable energy sectors. In strengthening these export controls, China aims to protect its national security and legitimate interests. Given this context, the decision indicates a growing trend of more conscientious use of these materials on a global scale.
Chinese authorities, too, have been concerned that China’s natural resources could be undesirably used in foreign capital markets. Consequently, it is strengthening controls. This would help guarantee that those materials are put to use in manners that best match up with our nation’s priorities. This change in policy demonstrates that China is committed to maintaining its competitive advantage. It’s zeroing in on value chains that consume rare earths and advanced battery technologies.
Rare earth elements (REEs) are essential ingredients in some of the most revolutionary technologies of our time—everything from cell phones to electric vehicles. China wants to use its dominance in this sector to its advantage by controlling exports. This Implementation Strategy makes sure that its money goes further and is spent smarter. Synthetic diamonds—increasingly used in emerging industrial applications and consumer products—are caught by the new export restrictions.
These controls are designed to protect national security interests and strengthen China’s domestic manufacturing industry. They provide a reliable stream of fundamental inputs for local producers. Analysts have cautioned that such measures could upend existing global supply chains. This would in turn lead to higher costs for any products that use rare earths or advanced batteries.
The announcement has already triggered widespread discussion in international trade circles concerning possible negative effects of this move. This should be a wake-up call for countries that depend heavily on imports from China, especially the health sector. Changes in federal regulations have spurred this significant reevaluation.