On October 9, 2025, China announced the latest in a string of export controls to come. These provisions specifically address rare earth elements, lithium ion batteries, and synthetic diamonds. The announcement, made in Shanghai at 12:51 JST, signifies a significant tightening of regulations governing the export of these critical materials. The updated measures were later revised in detail at 19:38 JST on the same day.
The new regulations should be understood against the backdrop of China’s efforts to promote its national security and economic security. The Chinese government uses these tight controls to extensively track these critical resources. It limits how these resources can be used outside of its borders. The action comes amid growing alarm over the possible hostile diversion of items that are key urbanization welding building blocks in demand across the globe.
Rare earth elements play a crucial role in the production of numerous electronic devices, renewable energy technologies, and military applications. China is tightening control of its own exports. This action is designed to cement its competitive edge in the international supply chain. China is tightening lethal controls on LI-ion batteries, the bloodline of electric vehicles and consumer portable electronics. This action shows the country’s commitment to controlling its high-tech material exports.
Beyond rare earths and batteries, China has recently applied new export controls on synthetic diamonds as well. Despite the widespread use of synthetic diamonds in the industry, including for industrial cutting tools and electronics, diamond’s increasing global market share. As we’ve mentioned before, China has a history of extreme export control pressures. This approach, in turn, allows it to make sure that these materials are being used in accordance with its national priorities.
The announcement has raised concerns among international trading partners, who are already highly dependent on Chinese supplies for their manufacturing operations. Analysts have forecast that these new requirements will push costs even higher. They further expect huge supply chain issues as nations race to switch operations to meet the new reality.
China’s focus on safeguarding its national interests through these export controls comes amid ongoing geopolitical tensions and trade disputes with various nations. Countries around the world are scrambling to do the same to strengthen and diversify their supply chains. They are looking to produce less domestically and this move could have long-term dramatic effects on global markets.