China has issued a 17-point set of interim measures that sharply tighten oversight of the country’s rare-earth sector, covering mining, smelting and separation activities. The rules, published on 22 August by the Ministry of Industry and Information Technology together with the National Development and Reform Commission and the Ministry of Natural Resources, take effect immediately after a public consultation that began in February. The regulations introduce nationwide total-quantity controls on annual production, expand the existing quota system to include imported raw materials and impose more stringent licensing, environmental and export-review requirements. Only companies approved by the three ministries will be allowed to operate, and those that violate the measures face penalties that can include reductions in next-year production quotas. Producers must establish product-tracking systems and upload the previous month’s material-flow data to a new national traceability platform by the 10th of each month. Local authorities are responsible for monitoring compliance and reporting breaches up the administrative chain. Analysts warn the tighter regime could further restrict global supply of the 17 metallic elements critical to electric vehicles, wind turbines and defence equipment. China accounts for the majority of world rare-earth output and processing capacity, giving the new rules significant implications for downstream manufacturers and competing producers in the United States, Europe and elsewhere.