China to restrict silver exports, echoing rare earths playbook

BEIJING — China is preparing to tighten controls silver Starting Thursday, exports expand restrictions on the common metal once critical to U.S. industry and defense supply chains.

Tesla’s CEO Elon Musk criticized the move on social media platform X over the weekend, responding to a post about the upcoming restrictions.

“This is not good. Silver is needed in many industrial processes,” Musk wrote.

But the rules are not new. First, the Chinese Ministry of Commerce announced new measures in October to strengthen surveillance rare metalsThe day US President Donald Trump and Chinese President Xi Jinping met in South Korea. At the time, Beijing agreed to a one-year pause on certain rare earth export controls, while the United States withdrew tariffs.

Earlier this month China released a list of 44 companies silver export allowed Within the scope of new measures in 2026 and 2027. The new rules in 2026 also restrict exports of tungsten and antimony, materials that dominate China’s supply chain and are widely used in defense and advanced technologies.

While China has not publicly announced a blanket ban on silver exports, the state-run Securities Times reported on Tuesday that quoted an anonymous industry insiderHe said the new policy officially elevates the metal from an ordinary commodity to a strategic material and puts export controls on the same regulatory basis as rare earths.

The EU Chamber of Commerce in China found in a flash survey of members in November that the majority of respondents were or expected to be affected by China’s export controls.

USA silver added It was added to the nationally designated list of critical minerals in November, citing its use in electrical circuits, batteries, solar cells and anti-bacterial medical devices. A separate US analysis found that China one of the world’s largest manufacturers It also hosts one of the largest silver reserves in 2024.

China exported more than 4,600 tonnes of silver in the first 11 months of the year, according to Wind Information, citing official figures; This figure is much higher than the approximately 220 tons of imports at that time.

The restrictions on silver come as interest in the metal has increased in recent weeks.

Two Chinese companies contacted Canada-based Kuya Silver on Friday and made a purchase offer. physical silver about $8 more CEO David Stein confirmed to CNBC that this price was higher than the market price at the time. He said one company was a manufacturer and the other was a large trading firm.

He added that an Indian buyer approached Kuya on Monday with an offer of $10 above the market price.

The rise in silver and gold prices reflects investors moving away from the U.S. dollar, conservative digital media outlet The Free Press said Tuesday in an op-ed written by George Mason University economics professor Tyler Cowen.

The increase in prices is a flashing alert for [U.S.] economy.”

US dollar index It fell nearly 9.5% in 2025, its worst performance since 2017.

By contrast, the price of silver has more than doubled and is on track for its best year since 1979, when the metal gained nearly 470%. Silver prices retreated on Wednesday after hitting a record high of over $80 an ounce earlier in the week, with spot prices last trading at $73.

Gold has gained over 60% so far this year and is also on track for its best year since 1979.

BitcoinGold, sometimes touted as an alternative to gold as a store of value, was trading around $88,000 Beijing time on Wednesday morning, down more than 5% on the year.

— CNBC’s Chris Hayes contributed to this report.