Economy

G7 Finance Chiefs Unite Against China’s Rare Earths Controls: How They Plan to Shield Your Business

G7 to coordinate response to China‘s rare earth export controls and diversify global suppliers.

October 16, 2025, 11:37 AM

A large "G7" sign stands in a sunny European plaza with an information tent, an orange van, and a church in the background, promoting a finance meeting.

A public information stand and a large "G7" sign in Bonn promote the meeting of finance ministers and central bank governors. By Symeonidis Dimitrios / Shutterstock.com.

Executive Summary

G7 finance ministers have agreed to coordinate their immediate response to China’s expanded export controls on rare earths and commit to diversifying global suppliers.

G7 partners expressed shared concerns over China’s “new extensive Chinese export controls” which broaden the scope of minerals and value chain covered, and include extraterritorial provisions.

The G7’s strategy involves a two-pronged approach: coordinating short-term engagement with Chinese counterparts and enhancing the long-term diversification and resilience of supply chains for critical materials.

The Story So Far

The G7 finance ministers are addressing new, extensive export controls imposed by China on rare earths, a move that is particularly impactful because China currently dominates the global supply, accounting for 80-90% of the world’s rare earth minerals. These controls, which broaden the scope of affected minerals and include extraterritorial provisions, necessitate a coordinated international response and long-term diversification efforts to mitigate supply chain vulnerabilities in critical industries.

Why This Matters

The G7’s unified response to China’s expanded rare earth export controls signifies a concerted international effort to mitigate Beijing’s significant leverage over critical mineral supplies. This will likely lead to immediate diplomatic pressure on China and accelerate global initiatives to diversify supply chains, ultimately aiming to reduce reliance on a single source and ensure greater stability for high-tech and industrial sectors worldwide.

Who Thinks What?

G7 finance ministers expressed shared concerns over China’s new, extensive export controls on rare earths and agreed to coordinate their immediate response while committing to diversify global suppliers.

China is expanding its export controls on rare earths, broadening the scope of minerals covered and extending to the entire value chain, with the G7 noting these controls contain significant extraterritorial provisions.

Group of Seven (G7) finance ministers have agreed to maintain a united front and coordinate their immediate response to China’s expanding export controls on rare earths, while also committing to diversify global suppliers. The decision, announced by European Economic Commissioner Valdis Dombrovskis, came during discussions on the sidelines of the International Monetary Fund (IMF) meetings in Washington on Thursday, October 16, 2025.

G7 Concerns Over China’s Export Controls

Dombrovskis highlighted the shared concerns among G7 partners regarding what he described as “new extensive Chinese export controls.” These controls are notable for broadening the scope of minerals covered and extending to the entire value chain, in addition to containing significant extraterritorial provisions.

China currently holds a dominant position in the global supply chains for rare earths, accounting for approximately 80-90% of the world’s supply. This near-monopoly amplifies the impact of any changes to Beijing’s export policies on international markets and industries reliant on these critical minerals.

Coordinated Response and Diversification Efforts

The G7 finance ministers reached a consensus on a two-pronged strategy. Firstly, they committed to coordinating their efforts and engagements with Chinese counterparts to seek short-term solutions to the immediate challenges posed by the export controls.

Secondly, and more conceptually, the group affirmed the ongoing necessity to enhance the diversification and resilience of their supply chains. This long-term objective aims to reduce reliance on a single source for critical materials like rare earths, building on existing efforts to secure global supply stability.

Addressing Supply Chain Vulnerabilities

The G7’s agreement underscores the growing global focus on vulnerabilities within critical mineral supply chains. By coordinating responses and actively pursuing diversification, major economies are seeking to mitigate risks associated with market dominance by any single nation and ensure the stability required for various high-tech and industrial sectors.