On October 9, 2025, China complemented this with major new export controls on certain rare earths, lithium-ion battery precursors and synthetic diamonds. With this move, the Chinese government is making a strong, definitive move in that direction. This action further extends its influence over the world’s global supply chain for these critical materials. The release on a Thursday, though, is meant to send the message that China will take strong action to defend its national security and developing interests.
Essentially, China has chosen this moment to play the rare-earth card. This decision comes at a time when international demand for these crucial materials, particularly for high-tech uses in electronics and renewable energy technologies, is skyrocketing. By controlling exports, China aims to manage how its resources are utilized internationally, thus maintaining leverage over the supply chain.
The new regulations will have dire ramifications for all industries globally that have a heavy dependence on Chinese rare earths and related products. This includes supply chains like EV manufacturing and semiconductor fabs. The policy change highlights China’s aim to exercise increased leverage over its resource exports in a time of deepening geopolitical rivalry.
From the outset, rare earths have been a lightning rod for trade tensions. The latter is particularly true between China and the United States. With these new export controls, China is sending a loud and clear message — it will put its economic self-interest first. Simultaneously, this step would increase trade friction with countries that supply or depend on such materials.
Officials stated that the export controls are designed explicitly to “safeguard national security and interests.” Governments around the world are putting their domestic industries first. Beyond that, they too are putting muscle into efforts to win securing critical supply chains for a more competitive global future.
The impacts of these new rules go far beyond economic self-interest. As CNBC notes, analysts believe China’s move would force other countries to reevaluate their own resource policies and overall government strategies. Nations heavily reliant on imported rare earths may seek alternative sources or increase domestic production capabilities in response to this announcement.