ChinaExportControls - Corporate Updates

China to limit silver exports from Jan 1

China, the world’s largest silver producer, will introduce tighter export controls on silver starting January 1, 2026. Under the new rules, only companies with special licences will be allowed to export silver, effectively limiting the amount of metal available to global buyers. Analysts say this move could further tighten global supply, which is already under pressure due to rising industrial demand.

China accounts for a significant portion of the world’s refined silver supply. The metal is widely used in electronics, solar photovoltaic panels, electric vehicles, and other industrial applications. Exchange-traded silver inventories in China are reported to be at their lowest levels since 2015, indicating a supply crunch that could be aggravated by the new export regulations.

Global demand for silver has been growing steadily. Industrial demand alone is estimated to exceed global annual production by hundreds of millions of ounces, creating persistent supply deficits. At the same time, investors have been buying silver as a safe-haven asset amid economic uncertainty, further increasing competition for the limited available supply.

Silver prices have already shown strong gains in response to supply concerns. On global exchanges, silver recently traded near $60 per ounce, while Indian domestic prices reached record levels above ₹80,000 per kilogram. Analysts predict that tighter Chinese exports could support further price increases, as fewer shipments enter international markets.

The policy does not impose a complete ban on exports but introduces stricter licence requirements. The ultimate impact will depend on how many licences are issued and how effectively the rules are enforced. Still, the move is expected to create a tighter market for both industrial buyers and investors, boosting silver’s value in the near term.

China’s licence-based silver export restrictions applicable from January 1, 2026, are likely to reduce global supply, intensify competition, and push silver prices higher.

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China eases export controls on auto chips

China’s Ministry of Commerce has announced that it is granting exemptions to its export controls on specific chips manufactured by Nexperia for civilian use. This is aimed at alleviating acute shortages in the automotive sector.

Nexperia, headquartered in the Netherlands but owned by Chinese company Wingtech, makes large volumes of simple but essential semiconductors used in vehicle electrical systems. The crisis began after the Dutch government took control of Nexperia on 30 September, citing economic‑security concerns that Wingtech would relocate production to mainland China. In response, China imposed export bans on finished chips made in China for foreign markets, triggering fears of shutdowns at car plants in Europe and Japan.

Beijing’s statement however does not specify exactly which chip types or uses qualify as “civilian use,” leaving some ambiguity for automakers and suppliers. According to industry reports, some German and Japanese companies say they have already received resumed deliveries of Nexperia chips from China under the new exemptions.

Despite the relief for automotive supply chains, the broader dispute between China, the Netherlands and the European Union over Nexperia’s ownership and operations remains unresolved. The Commerce Ministry has urged the EU to press the Netherlands to reverse its takeover of Nexperia.

Automakers and suppliers will now monitor how quickly and fully chip flows resume, and whether the exemption marks a stable shift or a temporary reprieve in what has become a high‑stakes tech and trade battleground.

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