China says unnamed foreign groups are using its rare earth exports for military purposes

Alcott Wei

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China accused unnamed foreign organisations and individuals of processing its rare earths for military purposes as it announced further export controls on Thursday.

The new curbs announced by the Ministry of Commerce will ban the provision of technology and services for mining and processing the minerals without permission.

China is the world’s leading producer of rare earth elements, which are crucial to the production of a wide range of products, from electric vehicles to spacecraft, especially in the military sector.

“Some overseas organisations and individuals are directly processing rare earth items originating in China and then transferring or providing them to relevant organisations and individuals,” the ministry said.

“The items were directly or indirectly used in sensitive areas such as military operations, causing significant damage or potential threats to China’s national security and interests.”

Beijing introduced the first controls on the export of specific minerals in July 2023 – again banning their export without permission – and has steadily expanded the number of rare earths subject to these controls since then.

But the new controls are the first time that these curbs have been expanded to the technology used to mine or process the minerals.

In July, the Ministry of State Security warned that contractors in countries that could not produce or purify rare earths themselves were using spies to smuggle the minerals abroad using forged labels or by misreporting ingredients.