China Reopens Limited Mineral Exports, Keeps US Defence Trade Blocked
China on 9 November 2025 instructed its commerce ministry to suspend parts of a 2024 export ban, a measure that took effect that Sunday and will remain in force until 27 November 2026. The narrow reopening restores civilian shipments under licence while preserving a blanket ban on dual use items tied to US defence programs or military end uses, a decision that tightens Beijing's control over strategic supply chains.
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On 9 November 2025 the Ministry of Commerce of the People’s Republic of China announced it was suspending selected elements of a 2024 export ban on critical minerals and related items. The change took effect that Sunday and will remain valid until 27 November 2026. Crucially, the move preserves China’s original prohibition on exporting dual use items connected to US defence programs or intended for military end uses, while pausing the clause that required licensing reviews for the stated period.
Under the revised rules export operators may apply for export licences from the Ministry of Commerce or from provincial commerce authorities authorised by the ministry, following prescribed procedures. That corridor reinstates a limited, regulated flow of civilian critical minerals to global markets. Mining.com.au characterised the adjustment as easing immediate pressure on manufacturers, while noting that the broader strategic battlefield remains unchanged.
For commercial buyers the adjustment provides short term relief. Many industries rely on critical minerals such as rare earth elements, lithium, cobalt and graphite for electric vehicle batteries, renewable energy technologies and advanced electronics. Restoring a licencing pathway reduces the risk of sudden supply stoppages for civilian users, and could temper near term price spikes and delivery delays that had been seen since the 2024 decree.
At the same time the decision leaves Washington’s defence sector excluded from those flows, underscoring Beijing’s intent to retain leverage over strategic inputs. By suspending the procedural review requirement rather than rescinding the ban China has created a tool that is reversible and granular. Policymakers and market participants interpret that structure as an instrument for calibrated pressure, allowing Beijing to reward or restrict access based on geopolitical developments or industrial priorities.
The announcement reinforces longer term trends in global mineral markets. Western governments and private firms have accelerated efforts to diversify supply chains and build processing capacity outside China. Those initiatives include investment in mining, refining and recycling projects in allied jurisdictions, and support for onshore processing. Yet transforming complex supply chains takes time and capital, meaning reliance on Chinese processing and exports remains significant in the near term.
Market implications are therefore mixed. Civilian manufacturers gain breathing room and buyers may see eased logistics in the coming months. At the same time the persistence of the defence exclusion keeps strategic risk premiums elevated for certain materials and preserves the potential for episodic export controls. Investors and policymakers should expect continued price volatility, targeted state interventions and intensified competition for alternative sources of critical minerals as governments race to bolster resilience against future disruptions.
