On October 9, 2025, China announced three sweeping new export controls. These legislative efforts are aimed at rare earth materials, lithium-ion batteries and synthetic diamonds, as well, to better protect our national security and American interests. The announcement was made in Shanghai at precisely 12:51 JST, with updates provided later that same day at 19:38 JST.
The Chinese government is cracking down on its control over rare-earth exports. This action is the first step in a broader process to control the use of these essential materials at home and abroad. Rare earth elements are key enablers in many high-tech sectors from electronics and renewable energy technologies to the defense industrial base. China is ramping up export controls. This move will help guarantee that its resources are spent wisely and in line with the nation’s priorities.
These new regulations apply not only to rare earths, but to lithium-ion batteries. These batteries are the dominant technology for consumer electronics, as well as electric vehicles. These controls are likely to have a significant impact on manufacturers around the world that depend on Chinese-sourced materials for manufacturing. China has begun to limit exports of critical inputs in order to enhance its competitive advantage and strategic position within the clear supply chain. This transition addresses growing risks related to international dependencies.
Synthetic diamonds made for easy traction in science and engineering fields, but their life as consumer goods has taken off, too. So, they have recently been folded into the export restrictions. China is cracking down on the movement of synthetic diamonds abroad. This action underscores its unequivocal commitment to safeguard American economic and national security interests.
The rationale behind these new export controls is clear. China aims to safeguard national security and interests amidst rising geopolitical tensions and competition for critical resources. As one of the world’s largest producers of rare earths and lithium-ion batteries, China’s decisions will likely reverberate throughout global markets, affecting supply chains and pricing dynamics.
Industry insiders believe that these directives will raise the level of accountability regarding sourcing and use of materials to new heights. This will happen both inside and outside of China. Businesses that depend on these exports need to recalibrate their business plans to account for the new reality in the regulatory environment. In response, they can look for other suppliers or build out domestic production capacity.