China issues regulation to cap total rare-earth quota, build traceability system

(Global Times/BRNN) -- China has rolled out an interim regulation on rare-earth mining, smelting and separation, requiring enterprises to establish a traceability system to record the flow of rare-earth products and upload the data every month to a government-run tracking platform.
The regulation, jointly issued by the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC) and the Ministry of Natural Resources (MNR), is aimed at strengthening total volume control for rare-earth mining and processing, covering both domestic extraction, including rare-earth mineral products, and smelting of minerals obtained through mining, imports, or processing of other ores, such as monazite concentrates.
Rare earths are a critical strategic resource, and managing their mining and smelting-separation processes is vital for national resource security and the sustainable development of related industries, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times.
According to the document, the authorities will set annual control targets for rare-earth mining and smelting based on factors such as national economic development goals, resource reserves and variations, industry development, ecological protection, and market demand.
Enterprises engaged in rare-earth mining, smelting and separation are required to strictly comply with laws and regulations, and operate within the assigned quota limits. The MIIT, together with the MNR, will designate the qualified enterprises. Any other organizations or individuals are prohibited from engaging in rare-earth mining or smelting activities, said the document.
The document clarifies that “rare-earth mining” refers to the process of extracting rare-earth minerals such as bastnaesite, ion-adsorbed rare-earth ore, and mixed rare-earth ore to produce mineral products. Also, “rare-earth smelting and separation” refers to the process of refining rare-earth mineral products into various single or mixed oxides, salts, or other compounds.
Zhou pointed out that China, as one of the world’s largest holders of rare-earth reserves, enforces regulation of its rare-earth industry, reflecting not only a high level of responsibility for its domestic resources and industries but also a commitment to global economic development and regional security.
Notably, Zhou stressed that the implementation of a rare-earth traceability system ensures that these strategic resources are not used in areas that could threaten national security. “In other words, as long as their use is safe and compliant, the export and trade of rare-earth products will not be hindered,” he said.

(Latest Update August 25, 2025)