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China hints it might be easing export limits on rare earths

China signaled readiness to ease its rare earth export restrictions, saying it is swiftly approving civilian-use applications and expanding general licences to stabilize global supply chains amid ongoing trade tensions.

DPA ASIA
Published December 04,2025
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The Chinese Ministry of Commerce on Thursday signalled the country might be open to loosening restrictions on rare earths exports, after the measures caused turmoil for businesses globally.

"To my knowledge, the Chinese government has promptly authorized all compliant export applications for civilian purposes," said spokesman He Yadong.

At the same time, Beijing was "actively" applying facilitative measures such as general licences to promote compliant trade in dual-use goods and maintain the security of global production and supply chains, he added.

Beijing imposed export restrictions on rare earths in April amid a trade dispute with the United States.

China is the world's leading producer of rare earths, which are highly sought-after in industry as well as in the high-tech and defence sectors.

Under the new restrictions, firms looking to import rare earths from China need to go through a complex export application process with the Ministry of Commerce.

However, the issuing of general export licences could help businesses in Europe who have reported that they have only been allowed to import quantities sufficient to meet stated needs but not enough to build up stockpiles.

Beijing agreed to issue general export licences for raw earths following talks between US President Donald Trump and Chinese President Xi Jinping in South Korea at the end of October, according to media reports.

Spokesman He did not reveal how many of these licences the Ministry of Commerce has issued so far.

"As long as the export applications are for civilian use, the Chinese government will issue an authorization quickly," he said.