China looked to tighten controls on silver exports beginning last Thursday, expanding its oversight of the metal and formally elevating it to the same regulatory category as rare earth elements, according to state media and industry sources.

State-run Securities Times reported Tuesday that the new export rules place silver on the same regulatory footing as rare earths, citing an unnamed industry insider. While Beijing has not announced a blanket export ban, the policy effectively reclassifies silver from an ordinary commodity to a strategic material subject to heightened oversight.The move comes as silver prices have surged amid rising investor demand and concerns over supply security.China’s Ministry of Commerce first announced the new export measures in October, the same day Donald Trump and Xi Jinping met in South Korea. At that time, Beijing agreed to a one-year pause on certain rare earth export controls while the U.S. rolled back tariffs.

Earlier this month, Chinese authorities released a list of 44 companies approved to export silver in 2026 and 2027 under the new framework. The 2026 rules also restrict exports of tungsten and antimony, materials dominated by China’s supply chain and widely used in defense and advanced technologies.

The EU Chamber of Commerce in China said in a November flash survey that a majority of member companies have been or expect to be affected by China’s expanding export controls on strategic materials. The United States added silver to its nationally designated list of critical minerals in November, citing its importance in electrical circuits, batteries, solar cells, and medical instruments. U.S. government analysis shows China was among the world’s largest silver producers in 2024 and holds some of the largest known reserves.

China exported more than 4,600 tons of silver in the first 11 months of the year, compared with roughly 220 tons of imports, according to Wind Information citing official data.The policy shift drew public criticism from Elon Musk, CEO of Tesla, who responded on social media platform X over the weekend. “This is not good. Silver is needed in many industrial processes,” Musk wrote.

Silver prices have more than doubled in 2025, putting the metal on track for its strongest annual performance since 1979. Spot prices briefly exceeded $80 per ounce earlier this week before retreating to around $73 on Wednesday. Canada-based Kuya Silver said it has received multiple offers from international buyers at significant premiums. CEO David Stein confirmed that two Chinese firms offered to purchase physical silver at about $8 above market prices, while an Indian buyer later offered $10 above market.

Economist Tyler Cowen of George Mason University wrote this week that the surge in silver and gold prices reflects investors shifting away from the U.S. dollar, calling it “a flashing warning for the [U.S.] economy.” The U.S. dollar index has fallen nearly 9.5% in 2025, its worst performance since 2017. Gold prices are up more than 60% this year, also marking their strongest performance since 1979. China’s move to restrict silver exports underscores Beijing’s growing willingness to use strategic materials policy as a lever in global trade, echoing tactics previously deployed in rare earths and other critical minerals.

At the time of publishing, Stocks.News holds positions in Tesla as mentioned in the article.