Overview
- Beijing broadened controls to rare-earth processing know-how covering mining, smelting, magnet manufacturing and recycling, with most provisions taking effect immediately.
- From Dec. 1, overseas exporters must seek licenses to ship foreign-made goods containing Chinese-origin rare earths when the content equals or exceeds 0.1% of the item’s value.
- Licenses will be denied to overseas defense users, and applications tied to advanced semiconductors or certain AI research will face case-by-case review under thresholds such as 14nm logic and 256-layer memory.
- China also announced additional curbs on super-hard materials, rare-earth equipment and raw materials, and lithium-battery and graphite-anode inputs that take effect on Nov. 8.
- Shares of Chinese rare-earth producers rose on the news, and governments and major chipmakers began impact assessments and diversification efforts, with South Korea saying it is reviewing the rules and consulting Beijing.