By The Epoch Times | Created at 2026-09-30 03:46:47 | Updated at 2026-09-30 04:45:13
1 hour ago
Beijing is “weaponizing” its dominance of rare earths, and Chinese authorities have escalated restrictions on efforts to diversify supply chains away from China, U.S. Ambassador David Perdue said on Sept. 29.
“This is a single-source dominant position that China is weaponizing against the world right now,” Perdue said in a post on X.
“We have told them this is unacceptable,” he said. “We are not going to live in a world where we have to go to China and kowtow to do business the way we want.”
In another post the same day, Perdue described the changes as an escalation from controls on exports from China to restrictions with consequences for people and businesses seeking alternatives.
“Back in April of last year, China put the export regime process in place for rare-earth elements and magnets,” he said. “Then, on Oct. 9, they weaponized that by expanding that to the entire world.”
“Now, they’ve weaponized it even further by escalating to the point where they make any diversification effort away from China a criminal offense, where they can arrest people, prosecute criminally, seize assets, exit ban, and so forth.”
Beijing has expanded its enforcement of strategic-mineral controls in recent months.
In June, China’s Commerce Ministry established a system encouraging organizations and individuals to report suspected violations involving strategic minerals. The conduct subject to reporting includes routing controlled materials through third countries and illegally transferring controlled technology overseas through investment, research and development, consulting or other means.
People who make verified reports may receive rewards, according to the ministry. Companies that discover that they have violated, or may have violated, the rules are instructed to report themselves, with voluntary disclosure considered as a possible basis for a lighter penalty. The system took effect July 1.
Rare-earth technology is also subject to controls covering more than shipments of minerals.
Rules Beijing announced last October covered technology used in rare-earth mining, refining, metal production, magnet manufacturing and recycling. They defined exports to include transferring or providing controlled technology to foreign organizations or individuals through investment, joint research, employment, hiring, and consulting.
The rules also barred Chinese citizens and organizations, without government permission, from providing substantial assistance to overseas rare-earth mining, refining and magnet-making operations.
China suspended implementation of those controls in November 2025 following U.S.–China trade talks, with the suspension formally scheduled to run through Nov. 10, 2026. The two countries agreed this month to extend their broader trade truce by two months, through Jan. 10, 2027, but Beijing has not announced a corresponding extension of these specific controls.
China added another enforcement tool this month.
Regulations that took effect Sept. 15 allow Chinese authorities to stop Chinese citizens from leaving the country for violations of export-control or technology import-export rules that authorities determine may endanger China’s industrial or technological security.
The restrictions have also reached two companies at the center of U.S. efforts to build rare-earth supplies outside China.
On June 22, China’s Commerce Ministry placed MP Materials and USA Rare Earth on an export-control list along with eight other U.S. companies. MP Materials operates the Mountain Pass rare-earth mine in California, while USA Rare Earth is developing a U.S. mine-to-magnet supply chain.
The Chinese order prohibits exporters from supplying the listed companies with dual use items and prohibits organizations and individuals in other countries from transferring Chinese-origin dual use items to them. Special exceptions require an application to the Commerce Ministry.
Beijing said the action was taken in response to the U.S. government adding Chinese companies to its list of “Chinese military companies.”
