China’s Exporting Control Strategy Evolution

China has been expanding its export control framework to regulate the global availability of critical goods.

On October 9, 2025, the Ministry of Commerce (MOFCOM) announced export control on lithium-ion battery technology, superhard materials, equipment and raw materials to produce and process rare earth and magnet-processing equipment. Restrictions on certain rare earth elements were additionally extended.

The scheduled implementation of these measures was suspended until November 2026 under a U.S.-China agreement.

Extraterritorial export controls were also included for the first time on some rare earth elements, requiring companies to obtain approval from the Ministry of Commerce to export part of their products from any country to another anywhere in the world.

This follows China's imposition of export controls on seven rare earth elements (REEs) announced in 2025 on April, the 4^th. This measure is under the Regulations on Export Control of Dual-use Items framework, listing items having dual military and civilian uses and currently comprehending about 900 items.

According to the European Chamber of Commerce, 40 per cent of European surveyed companies indicated that licensing approvals added more than two months to delivery timelines during 2025 supply chain disruptions, and one in three surveyed companies currently planning to divert critical sourcing or manufacturing out of the market.