China Reopens Civilian Critical Mineral Exports, Defense Access Remains Blocked
Beijing has suspended parts of its 2024 export ban, allowing limited civilian shipments of critical minerals until 27 November 2026, offering temporary relief to manufacturers that depend on Chinese processing. The move preserves a blanket exclusion for items tied to United States defense programs and military end uses, keeping strategic leverage in place and leaving long term supply risk intact for Western governments and firms.
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The Ministry of Commerce announced on 9 November 2025 that it will suspend elements of a 2024 decree that restricted exports of certain critical minerals. The change, effective from Sunday and valid until 27 November 2026, keeps in force the original ban on exports of dual use items associated with United States defense programs or intended for military end uses, while pausing the clause that required licensing reviews and additional restrictions during the stated period. Export operators may now apply for export licences through the Ministry of Commerce or provincial commerce authorities authorised by the ministry following prescribed procedures.
The limited reopening restores a narrow corridor for civilian supply chains that had been squeezed since Beijing first tightened controls. For manufacturers of electric vehicles, consumer electronics and industrial batteries that rely on processed rare earths, lithium compounds and other critical inputs, the policy change can ease immediate procurement pressures and reduce the risk of near term cost spikes. Analysts and industry participants describe the shift as temporary relief rather than a structural change in China’s approach to strategic materials.
China retains substantial control over global critical mineral processing capacity. Much of the world’s refining and separation infrastructure for rare earths and battery precursors is concentrated in China, giving Beijing the ability to influence downstream availability even when raw material exports are diversified. By preserving the restrictions tied to United States defence programmes, the authorities have signalled a continuing use of trade policy as a tool of national security leverage.
Markets and policy makers will closely watch how licensing is implemented in practice. The suspended clause removes an immediate administrative barrier for a defined period, but the ministry retains discretion to approve or deny licences and to reimpose stricter rules when the temporary window closes. That uncertainty supports a continued incentive for firms and governments to accelerate diversification strategies, including expanding non Chinese processing capacity, stockpiling critical inputs, boosting recycling and investing in alternative supply chains.
For Washington and allied capitals the decision complicates a narrow calculus. On one hand the reopening reduces the likelihood of acute shortages and price volatility in the coming year. On the other hand it leaves a structural vulnerability unaddressed, because the exemption for defence related uses ensures that strategic sectors remain isolated from Chinese supplied processing, maintaining the very leverage that prompted policy responses in 2024.
Long term trends are likely to favor more onshoring and regionalisation of mineral processing, accompanied by greater government intervention in strategic supply chains. The pause through November 2026 may calm short term markets, but it also underscores how cyclical windows of access can be used to pressure competitors while preserving the sovereignty of a national critical minerals strategy. Policymakers and executives now face a familiar trade off, balancing immediate supply needs against the demands of durable resilience.
