China’s latest major push on trade restrictive measures has been the recently announced tightening of its export regulations to rare earth elements, lithium-ion batteries, and synthetic diamonds. At a press conference in Shanghai, these officials made their announcement. This effort will play a significant role in ensuring our national security and that America’s interests are protected in an increasingly competitive international marketplace. The announcement was made on October 9, 2025, at 12:51 JST and received updates later that day at 19:38 JST.
In response, the Chinese government has recently rolled out new export controls. These measures are an extension of the EU’s circular economy action plan to control the use of its materials both domestically and globally. Here’s a look at how and why China is adopting these measures to protect their strategic materials. This ensures their alignment with national priorities and helps keep them out of bad actors’ hands. This action comes at a time when demand for rare earths, and particularly advanced battery technologies, is surging globally. The ongoing transition to renewable energy and the electrification of transportation drives this increase.
Rare earth elements (REEs) are critical for a wide range of high-tech applications, from electronics to renewable energy technologies to military gear. Since China is the world’s largest producer of these materials, ongoing and future Chinese export restrictions could have major consequences on global supply chains. Lithium-ion batteries are the key to powering electric vehicles and portable electronic devices. As environmental justice issues demand more attention, ensuring that we regulate these batteries has grown even more crucial.
In a major policy shift, the Chinese government recently announced new export controls on synthetic diamonds. This measure joins the accompaniment of TBD restrictions on rare earths and lithium-ion batteries. As a result of their use in industrial applications and luxury goods, synthetic diamonds have experienced rising demand around the globe. By restricting these exports, China hopes to keep control of this part of the market too.
The decision to institute these controls demonstrates China’s growing awareness to the geopolitical implications of its resource management. Countries around the globe are increasingly focused on technological autonomy and security of supply for critical materials. The Chinese government is acting decisively and thoroughly to defend its economic interests.
According to industry analysts, the new restrictions will increase prices for rare earths and lithium-ion batteries globally. Whatever happens between the presidential hopefuls, manufacturers are already making plans to respond to these policy changes. Many analysts are already forecasting that countries reliant on China for strategic materials will be forced to find alternative suppliers. Perhaps they realize that investing in domestic production can prevent future supply chain crises.