China’s Ministry of Industry and Information Technology proposed draft guidelines to tighten rare-earth industry oversight. The framework introduces a four-tier penalty system for quota violations, unauthorized processing, and reporting failures.
Fines may reach 10 times the illegal gains. Severe violations could result in license revocations or immediate facility shutdowns.
The policy shifts Beijing toward precise enforcement of strategic resources used in electric vehicles and defense. Shares of state-backed producers China Rare Earth Holdings and Shenghe Resources rallied following the announcement.