China Imposes Silver Export Controls Like Rare Earths: "Supply Concerns... Price Volatility Rises"

China's newly introduced silver export control measures took effect on January 1.

Experts predict that, as China-one of the world's largest silver producers-applies export controls on silver as strict as those on rare earth elements, price volatility will increase in the near term due to concerns over supply shortages.

According to major foreign media outlets such as the South China Morning Post (SCMP) in Hong Kong, China's Ministry of Commerce announced the "2026 List of Goods Subject to Export License Administration," which now includes silver.

Previously, in October of last year, the Ministry of Commerce had revealed its plan to restrict silver exports, along with tungsten and antimony, which had already been subject to export controls. Subsequently, on December 30, the ministry finalized and announced the list of 44 companies authorized to export silver for the two-year period from 2026 to 2027 under the new measures.

The newly introduced export controls replace the quota system that had been in place since 2000. According to SCMP, companies granted export licenses had to meet strict requirements, such as proving they exported silver every year from 2022 to 2024.

Chinese authorities cited "resource and environmental protection" as the reason for the silver export controls, but did not provide detailed explanations regarding the specific methods or scope of the measures.

However, Securities Times, an affiliate of the People's Daily, the official newspaper of the Chinese Communist Party, reported on December 30, citing an anonymous industry source, that "the new silver export control policy means silver has been officially included in the national strategic resource list, elevating its status from a 'general commodity' to a 'strategic material.'" The report added, "Silver export management is now at the same level as that of rare earth elements."

China is one of the world's largest silver producers, boasting strong refining and processing capabilities as well as some of the largest reserves globally. From January to November of last year, China's silver exports totaled 4,600 tons, while imports during the same period amounted to 220 tons.

Silver is a precious metal and an industrial material widely used in electronic circuits, batteries, solar panels, and medical devices. In November of last year, the United States added silver to its list of "critical minerals" deemed essential to the nation's economy and security, alongside copper and uranium.

Foreign companies affected by China's new silver export controls are bracing for the impact. According to CNBC, a survey conducted by the European Union Chamber of Commerce in China in November of last year found that the majority of respondents said they had already been affected by or expected to be affected by China's export controls.

Elon Musk, CEO of Tesla, also commented on X (formerly Twitter) on December 27, stating, "This is not good. Silver is needed in many industrial processes."

With silver prices soaring more than 150% this year, SCMP reported that China's implementation of export controls is fueling concerns over supply shortages in the market.

As a result, experts expect silver price volatility to remain high for the time being. The spot price of silver surpassed $80 per ounce for the first time last month, before retreating to trade in the $70 range.