Fact Check: "In April 2025, China announced new export controls on rare earth minerals, requiring businesses to apply for a license to export these materials."
What We Know
In April 2025, China implemented new export controls on seven categories of rare earth minerals, specifically requiring businesses to obtain licenses for exporting these materials. This announcement was made by China's Ministry of Commerce (MOFCOM) and the General Administration of Customs on April 4, 2025, as part of Announcement No. 18, which aimed to enhance national security and fulfill international non-proliferation obligations (source-4). The seven rare earth elements affected include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, which are critical for various industries, including defense and clean energy (source-3).
China's dominance in the rare earth market is significant, as it produces about 90% of the world's rare earths and processes nearly all of the heavy rare earths (source-1). The new licensing requirement has raised concerns about potential shortages and disruptions in manufacturing sectors that rely on these materials, particularly in the United States and Europe (source-2).
Analysis
The claim that China announced new export controls in April 2025, requiring businesses to apply for licenses to export rare earth minerals, is accurate. The announcement aligns with China's ongoing strategy to control its mineral resources and safeguard national interests. The requirement for licenses is not a complete ban but rather a regulatory measure that allows the government to monitor and control the export of these critical materials (source-7).
The sources used to substantiate this claim are credible and provide a consistent narrative regarding the export controls. The New York Times and AP News, for instance, are reputable news organizations that have reported extensively on the implications of these export controls for global supply chains (source-2, source-3). Additionally, legal and industry analysis from sources like Taylor Wessing and Holland & Knight further corroborate the details of the announcement and its implications for various sectors (source-4, source-8).
However, while the announcement is significant, it is essential to note that the controls are not an outright ban on exports but a regulatory measure that could still allow for exports under certain conditions. This nuance is crucial in understanding the potential impact of these controls on global supply chains.
Conclusion
The claim that China announced new export controls on rare earth minerals in April 2025, requiring businesses to apply for a license to export these materials, is Partially True. While the essence of the claim is accurate, it is important to clarify that these controls are regulatory measures rather than an outright ban, allowing for potential exports under specific conditions. This distinction is vital for understanding the broader implications of the announcement.
Sources
- China restricts exports of rare earths and other minerals. How does the export control system work?
- What to Know About China's Halt of Rare Earth Exports
- China grants rare earth export permits after US trade talks, offers relief to businesses
- China's Rare Earth Export Controls Target U.S. Industries: Scope and Impact
- China's Rare Earth Export Controls
- The Consequences of China's New Rare Earths Export Restrictions
- China Imposes Export Controls on Medium and Heavy Rare Earth Materials
