Chinese Rare Earth Stocks Surge as Beijing Tightens Export Restrictions on Key Technologies
Chinese rare earth stocks rallied sharply on Thursday after Beijing expanded export controls on advanced processing technologies. The move marks another step in China’s push to secure its dominance in critical minerals vital to the defence and semiconductor industries.
The Ministry of Commerce announced new regulations that will restrict overseas collaboration on rare earth processing without prior authorization. Exporters will now require government approval for shipments involving high-end magnet and alloy technologies.
The ministry also stated that exports linked to foreign defence projects will be banned entirely, while materials destined for semiconductor production will face stricter screening procedures.
These measures highlight China’s determination to protect strategic resources and limit the transfer of sensitive technology amid intensifying global competition for control over critical mineral supply chains.
Market reaction was strong. Shares of China Northern Rare Earth (SS:600111) surged 9%, while Shenghe Resources Holding Co Ltd (SS:600392) gained 7%. Jl Mag Rare-Earth (SZ:300748), listed in Shenzhen, jumped more than 12%.
This latest policy update follows a string of export restrictions since 2023, as Beijing increasingly links rare earth management to national security and long-term technology independence goals.
