For years, companies have navigated stringent U.S. data requirements for sensitive exports. Now, in a significant turn, China is implementing a similar system for its critical rare earth minerals, asking Western firms for proprietary business information and signaling a new global standard.
The long-standing practice of requiring detailed corporate data for the export of strategic goods, a hallmark of United States trade policy, is now being mirrored by China. For decades, firms seeking to procure sensitive American technology have complied with measures such as the Export Administration Regulations (EAR). These rules often mandate "Know Your Customer" diligence, requiring purchasers to provide detailed statements on the product's final destination and specific end-use to satisfy U.S. national security protocols.
In a move that reflects this precedent, it is now China's turn. Beijing has implemented a stricter export approval process for its own strategic assets: rare earths and the powerful magnets made from them. As the dominant producer of these materials, essential for electronics, EVs, and defence, China is now requiring foreign customers to submit comprehensive data about their operations, including production details and confidential customer lists.
This development is compelling Western companies to engage in a familiar yet distinctly new compliance challenge. Frank Eckard, CEO of German magnet maker Magnosphere, noted that Chinese authorities are now officially requesting "confidential information," a process he described as a formal method of data acquisition.
The impact is being felt across industries. Companies that have long adapted to U.S. regulations are now applying similar principles to their dealings with China.
"They ask for a lot of things," said Andrea Pratesi, supply chain director at Italy’s B&C Speakers, which makes components for concerts. He confirmed his company had to submit pictures and videos of its production line, along with market and customer data, to secure shipments. "We had to, otherwise they put aside all your papers."
Matthew Swallow, a product manager at UK-based Magnet Applications, reported that his company faced initial rejections for "lack of end-user evidence." To get approvals, he said, "We now provide photographs of the magnets in production, details of the ultimate application [and] the customers of the end users."
While accustomed to such regulations, companies remain cautious. Swallow acknowledged the concern around unmasking customers in this new context and advises clients to protect their core trade secrets. The adoption of these stringent controls by China suggests a broader trend, creating a more complex and demanding regulatory landscape for businesses operating in the global trade of strategic materials.
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Foreign ministers from major European nations expressed readiness to increase pressure on Russia, including potential new sanctions targeting the energy and banking sectors, to undermine its war efforts in Ukraine.
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Foreign ministers from major European nations expressed readiness to increase pressure on Russia, including potential new sanctions targeting the energy and banking sectors, to undermine its war efforts in Ukraine.
Iran has announced it will not participate in the upcoming round of nuclear negotiations with the United States, citing Washington’s support for Israel as a key reason.
The U.S. dollar advanced on Friday as investors rushed back into the currency and other safe-haven assets including U.S. Treasury bonds and gold after Israel launched widescale strikes against Iran, sparking Iranian retaliation.
A USAID official and three business owners pleaded guilty to a 10-year bribery scheme involving at least 14 prime contracts worth over $550 million in U.S. taxpayer dollars.
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