China’s Rare-Earth Export Controls

China’s Ministry of Commerce (MOFCOM) asserts that its recent rare-earth export controls are lawful national-security measures, not blanket bans. As a spokesperson stated in a Q&A posted on X, licenses will be provided for eligible civilian trade.

Importance of Rare Earths

Rare earths, a group of 17 elements essential for permanent-magnet motors in electric vehicles (EVs), wind turbines, and defense electronics, play a critical role in global supply chains, with China accounting for approximately 70% of global production and 90% of processing.

Export Control System Refinement

The MOFCOM spokesperson described the Oct. 9 measures, implemented alongside the General Administration of Customs, as part of a broader effort to refine China’s export control system. The initiative aligns with domestic laws and non-proliferation commitments, focusing on the military significance of medium- and heavy rare earths.

Licensing and Trade Facilitation

The ministry emphasized that implementation will rely on licensing rather than outright prohibition, stating that reviews will be legally carried out, and licenses will be granted to qualifying applications. They are considering facilitation measures, including general licenses and exemptions to promote legitimate trade, expecting minimal supply-chain impact.

Response to U.S. Comments

In response to President Donald Trump’s Oct. 10 remarks about a potential 100% tariff on Chinese imports, MOFCOM criticized U.S. policies as a “double standard,” citing the extensive U.S. control lists. The ministry expressed that China does not seek a trade war but is prepared to protect its interests if necessary, urging a return to consultation channels for resolving differences.

Critique of U.S. Port Fees

MOFCOM also criticized upcoming U.S. port fees for certain Chinese-linked vessels, labeling them as unilateral and inconsistent with WTO rules. In response, China plans to implement special port fees on U.S.-linked vessels to defend its companies’ rights.

Bitcoin Market Update

As of Sunday at 9:15 a.m. UTC, bitcoin was trading at approximately $111,271, reflecting a 0.5% decrease over the past 24 hours and a 10% drop since the intraday high of $123,641 on Oct. 9. The Crypto Fear & Greed Index showed a reading of 24, indicating “Extreme Fear” compared to “Greed” the previous week.