According to the Zhitong Finance APP, Dongfang Caifu Securities released a research report stating that after China's comprehensive control over the rare earth industry, the global supply growth expectations for rare earths may be adjusted downward, and related policies are favorable for the high-quality development of the domestic rare earth industry. Following the implementation of export controls, the Ministry of Commerce also stated that it will continue to accelerate the review of export license applications related to rare earths in accordance with laws and regulations. By August of this year, China's rare earth permanent magnet exports had already recovered to +15.4% year-on-year. The normalization of supply and the continuous growth of demand have driven the performance of the rare earth sector this year. In addition, rare earth permanent magnet materials are closely related to industries such as humanoid robots, and the sector may benefit from the expected growth in demand from emerging industries in the future.
<h2>The main viewpoints of Dongfang Caifu Securities are as follows:</h2>
Event: The Ministry of Commerce and the General Administration of Customs issued several documents announcing that starting from November 8, 2025, export controls will be implemented on certain medium and heavy rare earth-related items, certain rare earth equipment and raw materials, and rare earth-related technologies.
China's control over the rare earth industry has been comprehensively upgraded
In April of this year, the Ministry of Commerce and the General Administration of Customs announced export controls on seven medium and heavy rare earth-related items, including samarium. This round of export controls is a comprehensive upgrade based on this foundation. 1) Expansion of controlled items. Document No. 56 added export controls on five medium and heavy rare earth-related items, including holmium, further expanding the range of elements under rare earth control. 2) Control extends to overseas. Document No. 61 requires that for overseas operators exporting to other countries, if the exported items contain, integrate, or mix rare earth controlled items originating from China, they must obtain an export license for dual-use items issued by the Ministry of Commerce of China. 3) Export controls on rare earth equipment and technology. Documents No. 56 and No. 62 respectively implemented export controls on rare earth-related technologies, certain rare earth equipment, and raw materials, achieving more comprehensive control over the upstream and downstream of the rare earth industry chain.
The difficulty of reconstructing the rare earth supply chain overseas has increased, and the strategic position of rare earths has been further enhanced
Since the beginning of this year, the United States has attempted to reconstruct the rare earth supply chain in multiple ways, including: the U.S. Department of Defense investing $400 million in MP Materials, the only domestic rare earth mining and refining company, becoming the largest shareholder, and guaranteeing a purchase price of $110 per kilogram for neodymium-praseodymium products; supporting the development of the first new rare earth mine project in the U.S. in 70 years by Laramide Resources in Wyoming. China's strengthening of comprehensive control over the rare earth industry chain has increased the difficulty of reconstructing the rare earth supply chain overseas, further enhancing the strategic position of Chinese rare earth products.
Normalization of supply combined with continuous growth in demand boosts the performance of the rare earth sector
Policies such as the &#34;Interim Measures for Total Quantity Control Management of Rare Earth Mining and Rare Earth Smelting Separation&#34; released this year will include imported ores in total quantity control management and strengthen the traceability management of rare earth products throughout the process; special actions to combat the smuggling and export of strategic minerals require strengthening source control over rare earths. The demand side for rare earths benefits from the continuous growth in the production of new energy vehicles and the installed capacity of wind power. Following the implementation of export controls, the Ministry of Commerce also stated that it will continue to accelerate the review of export license applications related to rare earths in accordance with laws and regulations, and by August of this year, China's rare earth permanent magnet exports had already recovered to +15.4% year-on-year
The normalization of supply and the continuous growth of demand have driven the performance of the rare earth sector this year.
Target Aspects
It is recommended to pay attention to rare earth production companies CNRE (600111.SH), CHINA RAREEARTH (000831.SZ, 00769), Rnm (600259.SH), and permanent magnet material company JLMAG (300748.SZ, 06680).
Risk Warning
U.S. tariff policies exceed expectations

600111

300748

06680

000831

00769

600259

Dongfang Caifu Securities released a research report indicating that China's comprehensive control over the rare earth industry will lead to a downward adjustment in global rare earth supply growth expectations, and related policies will promote the high-quality development of the domestic rare earth industry. The Ministry of Commerce is accelerating the review of rare earth export licenses, with the export volume of rare earth permanent magnets increasing by 15.4% year-on-year. The expected growth in demand from emerging industries will further drive the market for rare earths. Starting from November 8, 2025, certain rare earth-related items will be subject to export controls, with the scope and areas of control being comprehensively upgraded

Zhitong

CNRE

JLMAG

ZGXT

CHINA RAREEARTH

CREM

East Money Securities: Strengthened Export Controls May Present New Allocation Opportunities for Rare Earths