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China has heavily invested in education, science, technology, and innovation since it launched reforms and opened up in 1978. In early days, China sent its youth to world-class universities all over the world and developed quality human resources. In the next stage, China focused on upgrading their own universities and invested within Chinese universities. Curricula were modernized, and teaching methods were improved. Exam systems were changed, and they started to catch up with the global universities and struggled to achieve global ranking. As a result, today, around a dozen universities have achieved status in the top hundred universities of the world, and nearly a hundred universities fall among the top 500 universities of the top global universities.

In the third stage, China focused on research and development. Invested generously in establishing state-of-the-art laboratories. Equipped laboratories with modern, advanced, and the latest equipment, instruments, and materials. Research infrastructure was improved immensely.

For research, three things are essential: research human resources, research infrastructure, and above all, research culture. China developed research human resources by sending millions of youths to top universities all over the world. Invested heavily in research infrastructure and created a research culture through various monetary incentives.

Now it is time for China to reap the fruits of education, research, development, and innovation. China is comprehensively utilizing sci-tech as an engine of economic growth.

One of the case studies is described below:

China’s expertise in minerals and mining, particularly for rare earth metals, is built on decades of strategic, long-term planning that includes control over the entire supply chain from mining and refining to manufacturing. Its dominance stems from a combination of vast resources, the ability to manage the complex and hazardous separation and purification processes, and heavy investment in R&D, which has led to a leading position in patents and the production of critical materials like permanent magnets. China also benefits from lower development costs due to state support for national champions, vast human resources, and an abundance of natural resource reserves, giving it a significant global advantage. 

Key areas of Chinese expertise

Mining and extraction:

China accounts for around 70% of global rare earth mining, a process that is often difficult due to the elements’ co-occurrence with other materials like uranium.

Processing and refining:

China holds a dominant position (around 90-94%) in the highly complex and specialized processes of separating and purifying rare earth elements.

Manufacturing:

The country is a leader in manufacturing finished products, producing over 90% of the world’s rare earth permanent magnets, which are vital for high-tech and industrial applications.

Research and development:

China has filed a significantly larger number of patents related to rare earths than other countries, indicating a strong focus on technological advancement in the field.

Chinese dominance on rare earth metals and critical minerals;

China controls up to 90 percent of global rare earth metals and critical minerals either physically or through Chinese technology, machinery, or processes. The October 2025 decisions—outlined in MOFCOM’s announcements (Nos. 57, 58, 61, and 62)—mark an important refinement of China’s export governance framework. These include:

Export Control on Rare Earth Items and Technologies: Covering mining, smelting, refining, and magnet-making processes for medium and heavy rare earth elements, including holmium, dysprosium, terbium, yttrium, and gadolinium.

Control on Dual-Use Technologies: Exports involving rare earth production line services and technology transfers will require dual-use export licenses.

Control on Superhard Materials and Synthetic Graphite: Including artificial diamond materials, lithium battery-related items, and synthetic graphite anodes—critical for the global electric vehicle (EV) industry.

Unreliable Entity List Update: Addition of 14 foreign entities (including firms such as Dedrone by Axon, BAE Systems Inc., Tech Insights, and Elbit Systems of America) for engaging in activities that undermine China’s national security and economic interests.

These steps are consistent with China’s Export Control Law of 2020 and international practices established under the Wassenaar Arrangement and UN frameworks. They neither target specific countries nor disrupt global trade arbitrarily. Instead, they ensure that technologies of strategic value are exported responsibly and with full regard to China’s national interests.

It is time for China to reap the economic benefits of its decades of huge investment in education, science, technology, and innovation.