China, the world’s top producer of rare earths, has added the critical material to a list of commodities subject to a special export data-gathering system until October 2025, Kallanish reports.

The country’s commerce ministry MOFCOM announced Tuesday traders need to report their export transactions to the China Chamber of Commerce for Import and Export of Minerals and Chemicals (CCCMC) in real time. The new requirements, effective from 31 October 2023, include information on the type of rare earth metals and oxide products, as well as volume, timing of departure/arrival, origin and destination of the shipment, and date contracts are signed.

CCCMC will gather, analyse and verify the information before passing it on to the commerce ministry. While authorities promise not to share detailed business information, exporters that don’t comply with the new requirements may be subject to a fine of up to CNY 50,000 and an export ban for 1-3 years.

Other additions to the commodity reporting regulations include copper concentrates, which will now be subject to automatic import licence management. The government says the measures will stabilise China’s foreign trade, providing a better understanding of trends in bulk commodities trade, “preventing risks.”

The move suggests China is working to tighten controls over its critical materials, with some market players indicating it lays the ground for further regulation.

The country is estimated to have accounted for almost 70% of the global rare earth mine production last year, and roughly 85% of its global processing capacity. Any potential export restrictions or bans would hit EV manufacturers around the globe.

On Friday, Chinese Premier Li Qiang said in a State Council meeting that as rare earths are strategic mineral resources, it is necessary to strengthen exploration, development, utilisation and standardised management of the resources. The government will push for green mining and smelting technology, increase the breakthrough and industrialisation process of high-end rare earth new materials, and crack down on illegal mining.

As trade tensions between the US and China continue to rise, the Chinese government announced earlier this year export restrictions on graphite, which is widely used in anode materials and semiconductors.