On 30/12, China's Ministry of Commerce announced a list of 44 enterprises licensed to export silver under new measures for the 2026–2027 period, two more than for 2025.

The same day, the country's Securities Times cited industry sources stating that the new policy has elevated silver from an ordinary commodity to a strategic material, placing its export control legally on par with rare earths. This move signals that the world's second-largest economy is preparing to tighten silver exports.

The decision to tighten controls follows the United States designating silver as a nationally critical mineral in November. This classification was due to silver's extensive use in electronic circuits, batteries, solar cells, and antibacterial medical devices. A US analysis also assessed China as holding the world's leading silver reserves and being among the largest producers in 2024.

This development comes at a time of escalating global demand for silver, which has significantly driven up prices. On 30/10, silver prices surged by 7,3% to 77,48 USD an ounce. Earlier this week, silver reached a new peak of 83,6 USD an ounce. Year-to-date, the metal's price has increased by 168%.

Investment silver bars displayed in Hangzhou, Zhejiang, China, on 30/12. Photo: Reuters

Evidence of strong demand and market tightness emerged last week when two Chinese enterprises contacted Kuya Silver (Canada), offering to purchase silver at approximately 8 USD above market price. Subsequently, an Indian client approached Kuya earlier this week with an offer to buy silver at 10 USD above the market rate.

In addition to silver, China maintained the number of licensed exporters for tungsten and antimony for the 2026–2027 period at 15 and 11, respectively. Antimony and tungsten are critical minerals used in defense, clean energy, and various other industrial sectors. Prices for both minerals have recently soared due to tightened supply in foreign markets.

Over the past two years, China has restricted the export of numerous minerals essential for products ranging from electronic devices and electric vehicles to infrared missiles and ammunition, citing national security concerns. A rapid survey conducted by the EU Chamber of Commerce in China indicated that a majority of businesses reported being affected or anticipating impact from China's metal export control measures.

Phien An (according to CNBC, Reuters)