📊Executive Summary

China has implemented stricter export controls on rare earth materials, requiring foreign companies to obtain government approval for exports containing over 0.1% of these materials sourced from China. This move is aimed at curbing the misuse of rare earths in sensitive industries, particularly defense. The new regulations will come into effect on December 1, 2025, and will also cover technologies related to rare earths. Given that China produces about 70% of the world's rare earth supply, these restrictions could significantly impact global supply chains, particularly in sectors like semiconductor manufacturing and electric vehicles. Procurement teams should prepare for potential sourcing challenges and increased lead times as a result of these new controls....