China’s decision to tighten export controls on rare earth minerals is raising major concerns across the global technology sector as companies including Apple and Nvidia assess potential supply shortages.

Under new rules taking effect on December 1, foreign firms must obtain licenses to export any product containing more than 0.1% Chinese-sourced rare earth materials or magnets.

The measures extend to technologies used in extraction, refining and magnet production, giving Beijing sweeping oversight across the value chain.

China’s Ministry of Commerce said the controls are designed to protect “national security and interests,” with particular scrutiny on applications tied to AI, chipmaking and military systems.

Analysts warn that licence applications connected to defence technologies are unlikely to be approved.

China dominates the global market, accounting for around 70% of rare-earth mining and 90% of processing.

These 17 elements are vital for smartphones, electric vehicles, renewable-energy turbines and advanced weapons systems. Any disruption risks rippling across the entire tech ecosystem.

The move follows the US’ 100% tariff on Chinese imports, announced after earlier restrictions on chip exports to Chinese firms. Markets initially slumped but recovered after Trump said relations with Beijing remain “fine.”

As reported by Channel News yesterday, the supply-side shock could present a major opportunity for Australian rare-earth producers such as Lynas and Arafura, with Canberra positioning itself as an alternative for the West’s critical-mineral needs.

Experts caution that even if trade tensions ease, compliance uncertainty will linger.