China Clarifies Rare-Earth Export Controls Are Security Measures, Not Bans

China's Ministry of Commerce (MOFCOM) has clarified that its new rare-earth export controls represent lawful national-security measures rather than comprehensive bans, with licenses to be issued for eligible civilian trade. This announcement came via a spokesperson's Q&A published on X on Sunday local time. Rare earth elements—17 critical minerals essential for EV permanent-magnet motors, wind turbines, defense electronics, and high-tech equipment—hold significant supply-chain importance due to China's dominance in the sector. China accounts for approximately 70% of global production and 90% of processing, meaning licensing changes can create downstream effects even when mining or manufacturing occurs elsewhere. The MOFCOM spokesperson described the October 9 action, coordinated with the General Administration of Customs, as part of ongoing efforts to refine China's export control system in compliance with domestic law and non-proliferation commitments. The spokesperson highlighted the military relevance of medium- and heavy rare earths and noted that partners were pre-notified through bilateral export-control dialogues. Implementation will rely on licensing instead of prohibitions, with reviews conducted legally and licenses granted for qualified applications. Beijing is also "actively considering" facilitation measures like general licenses and exemptions to support legitimate trade. MOFCOM assured that the supply-chain impact is expected to be "very limited," explicitly stating compliant civilian exports "can get approval." In response to former President Donald Trump's October 10 comments on Truth Social about potential 100% tariffs on Chinese imports and U.S. export controls on "critical software," MOFCOM criticized the U.S. stance as a "double standard," referencing extensive American control lists and de minimis rules. The ministry emphasized China does not seek a trade war but is unafraid of one, urging a return to consultation channels for reciprocal dispute management and warning of "resolute measures" if the U.S. proceeds. Separate remarks condemned U.S. port fees on Chinese-linked vessels as unilateral and WTO-inconsistent, with China planning special fees on U.S.-linked vessels as a defensive countermeasure. As of Sunday, 9:15 a.m. UTC, Bitcoin (BTC) traded around $111,271, down 0.5% over 24 hours and 10% from October 9's intraday high of $123,641, while the Crypto Fear & Greed Index registered 24 ("Extreme Fear") versus "Greed" the prior week, reflecting fragile market sentiment.