China defends export controls on critical minerals after G7 statement

China’s Foreign Ministry fired back at the G7 on June 18, defending its export controls on critical minerals as fully compliant with international norms. The response came just one day after G7 leaders, meeting at their summit in Evian, France, announced plans to collectively reduce their dependence on any single country for rare earth elements and magnets.

The target: no more than 60% of imports from one nation by 2030, with an aspirational goal of reaching 50% as soon as possible. The unnamed single country in question is, of course, China.

What China actually said

Foreign Ministry spokesperson Lin Jian framed China’s export restrictions as tools for maintaining peace, stability, and non-proliferation compliance.

Lin also urged G7 nations to uphold market economy principles rather than forming what he called “small cliques.”

In 2010, Beijing cut rare earth supplies to Japan during a territorial dispute, a move that sent shockwaves through global manufacturing and served as an early warning about the risks of mineral dependence. More recently, China imposed tighter export curbs on permanent magnets in 2025, further disrupting supply chains for Western industries.

The numbers behind the leverage

China processes between 47% and 87% of vital resources including copper, lithium, cobalt, and rare earth elements.

Rare earth elements are essential for everything from smartphone screens to electric vehicle motors to missile guidance systems. Permanent magnets made from rare earths are critical components in wind turbines and EV drivetrains.

Why crypto and tech investors should care

Rare earth elements are used in the production of advanced semiconductors. Cobalt and lithium are essential for the batteries powering everything from portable devices to the energy storage systems that back up data centers.

EV manufacturers rely heavily on permanent magnets containing neodymium and other rare earths. China’s 2025 restrictions on permanent magnet exports already forced automakers to scramble for alternatives.

The 2010 Japan episode demonstrated how quickly prices can spike when China decides to tighten the tap.

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