China’s Ministry of Commerce (MOFCOM) says its new rare earth export controls are legal national security measures (not blanket bans) and that licenses will be issued for eligible civilian trade, according to a spokesperson’s Q&A published Sunday morning local time.
Rare earths – a group of 17 elements used in permanent magnet motors for electric vehicles and wind turbines, defense electronics and other high-tech equipment – occupy a huge role in supply chains because China dominates the sector.
Beijing accounts for about 70% of global production and about 90% of processing and refining; So changes to licenses can have downstream impacts, even when mining or final manufacturing takes place elsewhere.
In comments published just a few hours ago, the MOFCOM spokesperson framed the October 9 action – taken with the General Administration of Customs – as part of a longer effort to “refine” China’s export control system in accordance with domestic legislation and nonproliferation obligations.
The spokesperson cited the military relevance of medium and heavy rare earths and said partners were notified in advance through bilateral export control dialogue mechanisms.
Implementation, the ministry said, will depend on licensing and not prohibition.
Reviews will be carried out in accordance with the law, licenses will be granted when applications qualify, and Beijing is “actively considering” facilitation measures – including possible general licenses and license exemptions – to promote legitimate trade.
The spokesperson also said China had assessed the effects of the measures in advance and expects the broader impact on the supply chain to be “very limited.” The message to commercial users was explicit: compliant civilian exports “can get approval.”
Respond to Washington, leaving room for conversations
MOFCOM also addressed President Donald Trump’s Oct. 10 comments on Truth Social about an additional 100% tariff on Chinese imports (to take effect Nov. 1, 2025) and potential U.S. controls on exports of “critical software.”
The spokesman called the US position a “double standard,” pointing to the breadth of US checklists and de minimis rules as examples of Washington’s expansive approach.
At the same time, the ministry emphasized the process, saying China “does not want” a trade war but “is not afraid of it” and urged a return to established consultation channels to manage differences on a reciprocal basis. The spokesman said China would take “resolute measures” to protect its interests if the United States proceeds.
Separate comments criticized U.S. port tariffs that go into effect Oct. 14 on certain China-linked vessels.
MOFCOM described those tariffs as unilateral and inconsistent with WTO rules and bilateral agreements. China, the ministry said, will impose special port fees on ships linked to the United States according to domestic regulations, characterizing the move as a defensive countermeasure aimed at safeguarding the rights of Chinese companies and maintaining fair competition in shipping.
As of Sunday 9:15 am UTC, according to CoinDesk Data, bitcoin was trading around $111,271, down 0.5% over the past 24 hours and down 10% from Thursday, October 9’s intraday high of $123,641. The Crypto Fear & Greed Index read 24 – “Extreme Fear” – versus “Greed” a week ago, underscoring a fragile sentiment.
