Suspension of Export Control Measures: Analysis of Policy Adjustments for Lithium Batteries, Rare Earths, and Superhard Materials

In a significant move, China's Ministry of Commerce and the General Administration of Customs jointly announced the suspension of several previously implemented export control measures. This decision, effective until November 10, 2026, impacts key sectors including lithium batteries, rare earths, and superhard materials. The announcement immediately sparked strong market reactions, with related company stocks rising and industry players expressing optimism.

Comprehensive Easing of Lithium Battery Export Controls

According to the announcement, the export controls on lithium batteries and artificial graphite anode materials stipulated in Announcement No. 58 have been suspended. This means that during the suspension period, relevant enterprises will no longer need to apply for export licenses from local customs authorities.Previously, Announcement No. 58 imposed strict controls on lithium battery exports, primarily affecting rechargeable lithium-ion batteries with a weight energy density greater than or equal to 300 Wh/kg, as well as related equipment and technologies such as winding machines, stacking machines, electrolyte filling machines, hot pressing machines, formation and capacity testing systems, and grading cabinets.This policy adjustment is a major positive for lithium battery exporters. Industry analysts suggest that suspending these controls will help Chinese lithium battery companies compete more effectively internationally and increase their global market share. 

Major Shift in Rare Earth Export Policy

Beyond lithium batteries, export controls related to rare earths have also been suspended. Controls on certain rare earth equipment, raw/auxiliary materials, and some medium/heavy rare earth-related items from Announcements No. 55 and No. 56 are temporarily lifted.As strategic resources, rare earth export policies are closely watched. The previous controls covered items related to seven medium/heavy rare earths: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, initially implemented to uphold national security and interests and fulfill international non-proliferation obligations.This policy shift has drawn significant international attention. Some foreign media outlets described it as a potential major turning point in China's rare earth export policy. Domestic rare earth companies have welcomed the change, believing it will help alleviate current operational pressures and contribute to the industry's long-term health.

Temporary Removal of Superhard Material Export Restrictions

For superhard materials, the export controls under Announcement No. 57 are also suspended. This adjustment is expected to profoundly impact the superhard materials industry.Superhard materials are widely used in high-end manufacturing sectors like machinery, electronics, and aerospace, serving as a key indicator of a nation's manufacturing capability. The previous restrictions had limited the export of related products.Following this change, superhard material exporters indicated they would seize the opportunity to expand their international market presence. A executive from a superhard materials company said, "This adjustment will help us compete globally and strengthen the international position of Chinese superhard materials."

Background and Impact

These suspensions by the two ministries represent a key step following consensus reached in Sino-US trade talks in Kuala Lumpur. China will suspend the export controls announced on October 9 for one year and will develop detailed implementation plans. These policy adjustments are expected to not only benefit the relevant industries but also positively impact the stability of global industrial and supply chains.

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