BEIJING — Starting Thursday, China will enforce tighter controls on silver exports, a once-common metal now vital to U.S. industrial and defense sectors. Tesla CEO Elon Musk criticized the move on his social media platform X, stating, "This is not good. Silver is needed in many industrial processes," in response to news about the impending restrictions.
Although these measures were first announced by China's Commerce Ministry in October during a meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea, the regulations seek to enhance oversight of rare metals. At that time, Beijing agreed to a temporary halt on some rare earth export restrictions, while the U.S. reduced tariffs. Earlier this month, China approved a list of 44 companies permitted to export silver under the revised regulations for 2026 and 2027. The forthcoming rules will also limit tungsten and antimony exports, key resources controlled by China and used in defense and advanced technologies.
The state-run Securities Times reported that the new policy elevates silver from an ordinary commodity to a strategic material, according to an unnamed industry insider. This change aligns its export control status with that of rare earth elements. In a November survey, the EU Chamber of Commerce in China found that most respondents have been, or expect to be, affected by the new Chinese export controls. The U.S. added silver to its critical minerals list in November, citing its use in electrical circuits, batteries, solar cells, and medical instruments. A separate U.S. report highlighted China as a leading silver producer and holder of large reserves.
China exported over 4,600 tons of silver in the first 11 months of the year, a significant increase compared to imports of around 220 tons, according to figures from Wind Information. The spike in interest for silver is evident, as two Chinese companies reportedly approached Canadian firm Kuya Silver with offers above market price, as confirmed by CEO David Stein to CNBC. Additionally, an Indian buyer offered to purchase silver at an even higher premium.
Conservative digital media outlet The Free Press featured a column by Tyler Cowen, an economics professor at George Mason University, suggesting that the rising silver and gold prices indicate investors are moving away from the U.S. dollar. Cowen referred to the trend as "a flashing warning for the [U.S.] economy." The U.S. dollar index has dropped nearly 9.5% in 2025, its poorest performance since 2017, while silver prices have more than doubled, on track for the best year since 1979 when prices soared by nearly 470%. After hitting a record above $80 an ounce earlier this week, silver prices fell to around $73 by Wednesday.
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