China has rolled out tighter controls on the mining and processing of rare earths by extending its quota system to include imported materials and requiring enterprises to report on the flow of strategic minerals regularly.
According to documents from departments led by the Ministry of Industry and Information Technology (MIIT), the new provisions stipulate that China’s quota system would apply not only to domestically produced rare earths, but also to those coming from abroad for refining.
China currently leads the global production of rare earths—a group of 17 elements that are essential to a wide range of high-tech and green technologies, including electronics, electric vehicles and wind turbines. The country also controls nearly all of the minerals’ processing, making it the undisputed dominant player in the rare earth supply chain.
In addition to the inclusion of imported minerals in the new quota system, companies involved in the production process must now submit monthly data on rare earth flows, including imports, into a newly established government information platform by the 10th of each month.
According to a report by the South China Morning Post, these rules were issued as guidelines on implementing the country’s Rare Earth Management Regulations that took effect this past October.
The documents, which the Hong Kong-based paper says are effective immediately, specifically detailed how government agencies should manage quotas for designated companies and make the flow of rare earth products traceable.
The latest move aligns with a string of recent regulatory actions, from adding rare earths and magnets to export restriction lists in April to issuing 2025 production quotas without the customary public notice—a sign of more discreet but firm regulatory posture.
“Compared to the previous quota system, which only regulated domestic raw materials, the new measures explicitly regulate imported ones,” stated Li Chao, chief analyst at Guojin Securities, adding that it further enhances China’s control over the rare earth supply chain.
Although official production and export quota figures were not disclosed, penalties for non‑compliance may include fines and cuts to future allocations.
