The new restrictions expand Beijing’s oversight of silver, a material that has traditionally been treated as an ordinary commodity but is now increasingly viewed as strategically important. Although Chinese authorities have not announced an outright export ban, the measures introduce stricter approval requirements that elevate silver to a regulatory status similar to rare earth elements.
The policy shift has drawn international attention as it coincides with rising global demand for silver. Tesla chief executive Elon Musk reacted to the development over the weekend, warning that tighter controls could disrupt multiple industrial processes that rely heavily on the metal.
China’s Ministry of Commerce first outlined the new framework in October as part of a broader effort to strengthen supervision of key minerals. The announcement came on the same day U.S. President Donald Trump and Chinese President Xi Jinping met in South Korea, where Beijing agreed to a one-year pause on certain rare earth export controls while Washington eased some tariffs.
Earlier this month, Chinese authorities published a list of 44 companies approved to export silver under the new regime in 2026 and 2027. The updated rules for 2026 also extend export restrictions to tungsten and antimony—materials in which China dominates global supply and which are widely used in defense systems and advanced technologies.
While official statements have avoided characterising the move as a ban, state-run Securities Times cited an unnamed industry source who said the policy formally reclassifies silver as a strategic material. This shift effectively places silver under the same level of scrutiny as rare earths, signalling tighter long-term controls.
The impact is already being felt among foreign businesses operating in China. The EU Chamber of Commerce in China reported in a November flash survey that a majority of its members had been affected, or expected to be affected, by China’s export control measures on strategic materials.
In the United States, silver was added to the national list of critical minerals in November, reflecting its importance in electrical circuits, batteries, solar panels and medical equipment. U.S. government data also show that China was among the world’s largest silver producers in 2024 and holds some of the largest known reserves.
Trade figures highlight China’s dominant position. Official data cited by Wind Information show that China exported more than 4,600 tonnes of silver in the first 11 months of the year, compared with imports of about 220 tonnes over the same period.
The tightening of controls comes amid surging interest in silver on global markets. Canada-based Kuya Silver disclosed that two Chinese firms recently offered to buy physical silver at prices significantly above prevailing market rates, while an Indian buyer made a similar premium offer days later. These developments suggest growing concerns over future availability.
Market analysts say the surge in silver and gold prices also reflects broader investor unease. A recent column by economist Tyler Cowen argued that rising precious-metal prices signal a shift away from the U.S. dollar, describing the trend as a warning sign for the American economy.
So far this year, the U.S. dollar index has fallen nearly 9.5%, its weakest performance since 2017. Over the same period, silver prices have more than doubled, putting the metal on track for its strongest annual performance since 1979. Although prices eased on Wednesday after briefly topping $80 an ounce earlier in the week, spot silver was still trading around $73.
Gold has also rallied sharply, gaining more than 60% year-to-date and heading for its best year since 1979. By contrast, Bitcoin—often promoted as an alternative store of value—was trading near $88,000 on Wednesday, down more than 5% for the year.
As China deepens its control over strategic minerals, analysts warn that tighter silver exports could add fresh pressure to already strained global supply chains, intensifying competition for critical resources in an increasingly fragmented world economy.