In a move consistent with global norms, China recently unveiled a revised Catalogue of Technologies Prohibited and Restricted from Export, reducing the number of regulated items from 164 to 134. The Ministry of Commerce (MOFCOM) highlighted the aim to facilitate international trade cooperation while safeguarding national economic security, dismissing claims by Western media that the changes, particularly those related to rare earths, threaten global supplies.
Contrary to China’s streamlined approach, the US has consistently expanded its export control list, fueling concerns of a politicized technology and trade environment. Chinese analysts argue that Western reports emphasizing China’s rare-earth monopoly serve ulterior motives, aiming to disrupt exports and manipulate prices for the benefit of certain Western nations.
Experts, including Mei Xinyu from the Chinese Academy of International Trade and Economic Cooperation, assert that China’s adjustments respond prudently to the evolving international landscape shaped by Western attempts at decoupling. Stressing that the modifications won’t increase costs or hinder business for equal trading partners, Mei maintains that China remains a responsible and reliable global supplier.
Tu Xinquan, Dean of the China Institute for WTO Studies, underscores that the revised controls focus on non-impactful technology and reiterates that China adheres to international practices, avoiding the politicization of technology. The new catalogue specifically bans the export of rare-earth extraction technology while requiring approval for related techniques, reflecting China’s commitment to environmental protection and industry structure improvement.
Despite media attention on Western efforts to diversify rare-earth sources, analysts note a significant lag in technology and production capabilities compared to China. Industry experts, including Wu Chenhui, emphasize that Western mines’ annual production pales in comparison to Chinese counterparts, exposing their limited capacity in patents, tech know-how, and specialized equipment for rare-earth extraction.
Huang Zhiyong, a rare-earth industry veteran, acknowledges China’s refining and supply chain advantages but highlights environmental challenges and the country’s positioning in the mid- to lower-end of downstream applications due to patent ownership by developed countries.
In response to the revised catalogue, Foreign Ministry spokesperson Wang Wenbin emphasized China’s commitment to reform and development through opening up, creating favorable conditions for international economic cooperation while ensuring national economic security and development interests. The update aligns with China’s adaptation to technological advancements and its routine efforts to manage technology trade responsibly, Wang noted.
Mei concludes that China’s rare-earth industry strength stems from efficiency and innovative supply chain extension, differentiating it from Western practices marked by regulatory abuse and sanctions.