China Export Control Update

In early November 2025 – in consequence of the ongoing US - China trade negotiations –, China's Ministry of Commerce (MOFCOM) issued two critical announcements, signaling a significant, though temporary, de-escalation in its export control:

1. Announcement 70/2025 suspends the entire sweeping package of new controls (Announcements 55-58, 61, 62) issued on October 9, 2025, which we analyzed in our previous briefing.
2. Announcement 72/2025 partially suspends and restructures the key extraterritorial re-export controls targeting the United States that were established by Announcement 46/2024.

This briefing outlines the new legal situation and clarifies the practical impact on your compliance and supply chain obligations.

I. Announcement 70/2025: Suspension of the October 9 Measures

On November 7, 2025, MOFCOM announced the suspension of the entire package of export controls issued just one month prior.

• What is Suspended: The implementation of MOFCOM/GAC Announcements 55, 56, 57, and 58, as well as MOFCOM Announcements 61 and 62, is suspended.
• Duration: The suspension is effective from November 7, 2025, until November 10, 2026.

Specifically, the following key threats are now on hold:

• The formal extraterritorial "re-export" control regime for rare earths (Ann. 61/2025).
• The new 0.1% de minimis rule for PRC-origin rare-earth content in foreign-made products (Ann. 61/2025).
• The expanded controls on the entire value chains for rare earths, lithium batteries, and superhard materials (Ann. 55, 56, 57, 58/2025) and rare earth related technologies (Ann. 62).

II. Announcement 72/2025: A Major Pause and Scale Back in existing Re-Export Controls against the US

On November 9, 2025, MOFCOM issued Announcement 72/2025, a significant measure that alters the current status quo of PRC re-export controls against the US. This announcement specifically targets and suspends a key part of Announcement 46/2024.

A. The Previous Status Quo (Under Ann. 46/2024)

To understand the change, it is essential to recall the two-part structure of Announcement 46 (2024):

1. Clause 1: A blanket prohibition on the export of any dual-use item to US military users or for military end-uses.
2. Clause 2: An "in principle" ban on the export of specific strategic materials – namely Gallium, Germanium, Antimony, and superhard materials – to any US organization (including civilian). It also imposed stricter checks on graphite.

The final paragraph of Announcement 46 (2024) established its extraterritorial reach by implementing the authority granted under Art. 49 of the Dual-Use Regulation, warning that any foreign entity re-exporting PRC-origin dual-use items in violation of these provisions "shall be investigated... and shall be held legally responsible". This created two distinct re-export bans for European companies:

• A total ban on re-exporting any PRC-origin dual-use item (e.g., magnets from Ann. 18/2025) to the US military (per Clause 1).
• A specific ban on re-exporting PRC-origin Gallium, Germanium, etc., to any US entity, including civilian (per Clause 2). In effect, creating a special category of dual use items (Gallium, Germanium etc. related) for which re-export to the US was completely banned.

B. The New Legal Situation (Effective Immediately)

MOFCOM Announcement 72/2025 suspends the second clause ("second paragraph") of Announcement 46 (2024). This suspension is effective from November 9, 2025, until November 27, 2026.

Crucially, Announcement 72 does NOT suspend Clause 1.

The direct consequences of this change are:

• What is NO longer banned: The re-export of Chinese-origin Gallium, Germanium, Antimony, and superhard materials to US civilian users is no longer, in principle, banned. These items now revert to standard dual-use export control rules, subject to licensing if applicable. Re-export is – depending on End-Use agreements – generally possible.
• What is STILL banned: The re-export of any PRC-origin dual-use item (including Gallium, Germanium, and other controlled items like the permanent magnets from Announcement 18/2025) to US military users or for military end-use remains strictly prohibited under the still-active Clause 1 of Announcement 46 (2024).

In short, the "special category" of goods (Gallium, etc.) with a blanket re-export ban to all US entities has been removed. However, the "special category" of end-user (the US military) remains a "red line" for all PRC-origin dual-use items.

C. Practical Examples for Clarity

These two examples illustrate the new legal line:

Example 1 (Now Permitted, previously banned): A German company re-exporting Chinese-origin Gallium wafers (a dual-use item) to a US civilian semiconductor manufacturer. This was previously banned by Clause 2 of Ann. 46 but is now permissible (subject to standard licensing).

Example 2 (Still Banned): A German company re-exporting Chinese-origin Terbium-containing NdFeB permanent magnets (controlled under Ann. 18/2025) to a US defense contractor. This re-export remains strictly prohibited under the still-active Clause 1 of Ann. 46.

III. Key Takeaways for European Companies

This pair of announcements represents a significant pause in trade tensions. For compliance and planning purposes, companies should note:

1. The "October 9" Package is On Hold: The extensive new controls (Ann. 55-, 58, 61,62), including the 0.1% de minimis rule, are suspended until November 10, 2026. This provides vital breathing room for supply chain analysis.
2. US Civilian Trade Eased: The specific ban on re-exporting strategic materials like Gallium and Germanium to US civilian customers has been lifted until late 2026.
3. US Military Ban Remains the "Red Line": The prohibition on any PRC-origin dual-use item (from any control list, including Ann. 18/2025) reaching a US military end-user is still in full effect. Companies must maintain strict end-user screening for any US-bound transactions.