Update on Chinese export restrictions

Following recent developments in trade negotiations between China and the United States on Thursday, October 30, we would like to inform you of an important change in the export regulations concerning rare earth materials. These developments affect the supply of both magnets and machines and systems that incorporate magnetic components.

Earlier this year, the Chinese Ministry of Commerce introduced new export guidelines under Announcement No. 18. These regulations, effective as of 4 April 2025, require an export licence for products containing heavy rare earth elements (HRE), such as dysprosium, terbium and samarium. On 9 October, additional measures were announced. However, during the recent China–US summit, it was decided to temporarily postpone these additional measures, as confirmed on 7 November via Notice 70.

Please note: Announcement No. 18 remains in full force. The situation has therefore not deteriorated, but neither has it improved.
 

Consequences for our deliveries

For Goudsmit and our customers, this means the following:

• For HRE-containing magnets, an export licence must still be applied for per order. The lead time for this is typically 2.5 to 4 months, possibly longer if additional checks are carried out.
• Customers who design or use products containing HRE magnets must provide an end-user certificate (EUC).
• For non-HRE magnets, uncertainty remains due to increasing third-party inspections and random custom checks at various ports, leading to unpredictable release times.
• Chinese suppliers require time to adapt to the recent changes. As a result, it may take time before new procedures are fully implemented — both in production and at customs.
• The situation is currently dynamic; interpretation and application of the rules may change daily.

We therefore advise exploring HRE-free alternatives together with us. All other provisions from Announcement No. 18 remain unchanged. These were previously explained by Goudsmit. These factors may impact lead times, availability, and cost of magnetic components and systems.
 

Our approach

The Chinese government’s measures fall outside our sphere of influence (Force Majeure). Nevertheless, we are doing everything possible to mitigate the impact on our customers. We are closely monitoring the situation and working with our suppliers and partners in the chain to ensure supply reliability. We are currently conducting a detailed impact analysis to assess the specific consequences for our products and deliveries. As soon as more clarity is available, we will contact you.

Have you already received signals from your own suppliers or do you have questions about these developments? Please do not hesitate to contact your regular contact person at Goudsmit.