China says foreigners are using its rare earth exports for military purposes

China has accused unnamed foreign organisations and individuals of processing its rare earths for military purposes as it announced further export controls on Thursday.

China is the world’s leading producer of rare earth elements, which are crucial to the production of a wide range of products, from electric vehicles to spacecraft, especially in the military sector.

The ministry said: “Some overseas organisations and individuals are directly processing rare earth items originating in China and then transferring or providing them to relevant organisations and individuals.

“The items were directly or indirectly used in sensitive areas such as military operations, causing significant damage or potential threats to China’s national security and interests.”

Beijing introduced the first controls on the export of specific minerals in July 2023 – again banning their export without permission – and has steadily expanded the number of rare earths subject to these controls since then.

But the new controls are the first time that these curbs have been expanded to the technology used to mine or process the minerals.

South China Morning Post