China has quietly issued its first 2025 rare earth mining and smelting quotas without the typical public statement, sources with knowledge of the matter said this week, another sign of Beijing tightening its control over the crucial sector.

China's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials,

Rare earths are key materials for many electric vehicle (EV) parts. China has a dominant position in the global rare earth supply chain with its abundant deposits and high vertical integration. In June 2025, China implemented export controls on some medium and heavy rare earths, triggering a crisis for the global automotive supply chain.