China is set to tighten controls on silver exports from Thursday, extending its oversight over a metal that has traditionally been treated as an ordinary commodity but is increasingly viewed as strategically important to global industry and defense supply chains.
The move has drawn attention in recent days after Tesla Chief Executive Elon Musk criticized the decision on the social media platform X, writing that the policy was “not good” given silver’s importance in many industrial processes.
While the comments brought fresh scrutiny to the issue, the measures themselves are not new and were first outlined by Beijing months earlier.
Silver elevated to strategic status
China’s Ministry of Commerce announced the new export measures in October as part of a broader effort to strengthen oversight of rare and strategic metals.
The announcement came on the same day that US 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 the US rolled back tariffs.
Earlier this month, China released a list of 44 companies approved to export silver under the revised framework in 2026 and 2027.
While Beijing has not formally declared a blanket ban on silver exports, state-run Securities Times cited an unnamed industry insider who said the policy effectively elevates silver to the same regulatory status as rare earths.
Under the new rules taking effect in 2026, China will also restrict exports of tungsten and antimony, materials in which it holds a dominant position and which are widely used in defense and advanced technologies.
The EU Chamber of Commerce in China said a flash survey of members conducted in November showed that a majority of respondents have been or expect to be affected by China’s tightening export controls.
Rising importance for US and global industry
The tightening of silver exports comes as the metal gains prominence in industrial and national security discussions.
The United States added silver to its list of critical minerals in November, citing its use in electrical circuits, batteries, solar cells, and anti-bacterial medical instruments.
A separate US analysis noted that China was among the world’s largest producers of silver in 2024 and home to one of the largest known reserves.
Trade data highlights China’s significance in the global silver market.
According to Wind Information, citing official figures, China exported more than 4,600 tons of silver in the first 11 months of the year, compared with imports of roughly 220 tons over the same period.
The policy shift has coincided with increased interest from buyers.
Canada-based Kuya Silver said two Chinese companies recently offered to purchase physical silver at about $8 above prevailing market prices, while an Indian buyer made an offer at a $10 premium, underscoring growing demand amid tightening supply expectations.
Prices surge as dollar weakens
Silver prices have rallied sharply in recent months, reflecting both supply concerns and broader macroeconomic trends.
The metal has more than doubled in price this year and is on track for its best annual performance since 1979, when prices surged nearly 470%.
Spot silver briefly touched a record above $80 an ounce earlier this week before retreating to around $73.
Gold has also gained more than 60% so far this year, also marking its strongest performance since 1979.
Analysts and commentators have linked the surge in precious metals to a weakening US dollar, which has fallen nearly 9.5% in 2025, its worst annual showing since 2017.
Bitcoin, often touted as an alternative store of value, has lagged behind precious metals, trading near $88,000 on Wednesday morning Beijing time and down more than 5% for the year.
As China moves to tighten control over silver exports, market participants are closely watching how the new measures will affect global supply chains, prices, and trade dynamics in the year ahead.
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