Shijie Wang
Beijing has shifted its rare earth management model to a “total volume control” system, in which annual production caps are set centrally and allocated directly to enterprises. This reflects tighter centralization and a new focus on controlling overall output rather than mandating production targets.
New measures realesed in August derive authority from the Mineral Resources Law and the Rare Earth Regulations, elevating rare earth governance from earlier measures implemented in 2012 and reinforcing Beijing’s ability to close loopholes and strengthen enforcement.
Industry participation is now limited to state-designated groups, and all production and sales must be recorded on a centralized traceability platform. This ensures rare earths remain firmly under central control, reduces opportunities for illicit flows, and enhances Beijing’s leverage in global competition.
On August 22, the People’s Republic of China’s (PRC) Ministry of Industry and Information Technology (MIIT), together with the National Development and Reform Commission (NDRC) and the Ministry of Natural Resources (MNR), jointly issued the “Interim Measures for the Administration of Total Volume Control over Rare Earth Mining and Rare Earth Smelting and Separation” (稀土开采和稀土冶炼分离总量调控管理暂行办法), replacing the “Interim Measures for the Administration of Rare Earth Directive Production Plans” (稀土指令性生产计划管理暂行办法) issued in 2012 (MIIT, August 22).
The new regulation retains some characteristics of a planned economy, with output still under the control of the central government. It also introduces upgrades and revisions to how the industry is regulated, enhancing central oversight, reducing the power of local governments, and digitizing data collection on supply chain flows.
State Advances Regulatory Authority Over Sector
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