Global Industrial Bulletin

Asia

China: Ministry of Commerce announces further export controls on various critical metals

On 4 February 2025, China’s Ministry of Commerce announced the implementation of new export controls on items related to tungsten, tellurium, bismuth, molybdenum, and indium.

These metals are used in defence and clean energy industries, among others. They have a wide range of uses, including in the manufacture of:

• phone screens and television displays

• fibre-optic technology

• artillery shells, armour plating and cutting tools 

• applications in the construction and oil and gas sectors

• solar panels and memory chips

• the processing, and production of metals and metal products

The new restrictions on molybdenum will apply only to the export of certain powders used in missile manufacturing.

Impact: Businesses engaged in the export of these products from China are required to apply for an export licence, in accordance with export control legislation on dual-use items that have both military and civilian applications.

As China dominates the global supply of these materials, the new restrictions are likely to cause disruption to industrial supply chains.

China: Ministry of Commerce proposes new restrictions on battery and critical mineral technology exports

On 2 January 2025, China’s Ministry of Commerce (MOFCOM) issued a document proposing new export controls on technology used to process lithium and gallium, and to manufacture battery components. Processing of lithium is critical in the manufacture of electric vehicle batteries. The proposed controls would ensure China’s continued dominance in lithium processing.

MOFCOM has not announced when the new rules would apply.

Impact: If enacted, the restrictions could pose supply chain challenges for manufacturers planning to use Chinese technology to extract or process lithium. The restrictions could also impact on Chinese businesses planning to expand their operations into other jurisdictions.

Currently the proposals are open for public comment until 1 February 2025.

China: Ministry of Commerce bans export of critical minerals to US 

On 3 December 2024, The Ministry of Commerce announced strengthened export controls on dual-use items to the United States. New measures include the prohibition of the export of dual-use items for military use, and strict controls on the export of gallium, germanium, antimony, superhard materials and graphite-related dual-use items. 

These materials have a range of applications in the defence and aerospace, energy and telecommunications industries. Gallium and germanium are crucial for semiconductor manufacturing, while graphite is essential for batteries, particularly for electric vehicles.

Impact: Businesses must ensure that they comply with the new restrictions, which are likely to cause supply chain disruptions and increased costs for affected industries.

EU

40 hazardous chemicals added to Prior Informed Consent regulation 

On 7 January 2025, the European Chemicals Agency announced the addition of 40 chemicals to Annex I of the EU’s PIC (Prior Informed Consent) regulation. This includes five industrial chemicals as well as 35 pesticides.

The PIC Regulation oversees the trade of specific hazardous chemicals that are either banned or heavily restricted within the EU. It imposes requirements on companies that intend to export these chemicals to non-EU countries or import them into the EU.

The new additions include a subgroup of PFAS, used in products such as: protective and stain resistant coatings for electronics, textiles and carpets, packaging; metal plating; fire-fighting foams; cleaning and polishing products.

Impact: Businesses exporting these substances will have to complete an export notification to ECHA, before beginning their export. Explicit consent from importing countries will also be required for 38 of the chemicals on the list.

Businesses can now start to notify their exports using the ECHA’s ePIC online tool.

Revised Construction Products Regulation now in force 

On 1 January 2024, new regulations laying down harmonized rules for the marketing of construction products in the EU entered into force.

The Construction Products Regulation (CPR) includes measures to promote the circular economy and green choices, setting new rules for declaring products’ environmental and sustainability performance.

The new regulation updates existing rules, incorporating new technical developments for standardization, and modifying the definition of “construction products” to include both traditional materials and new technologies like 3D printing. It introduces digital product passports, to provide better information to consumers, as well as for declaration of performance and conformity, safety information and instructions for use.

The changes introduced with the CPR are also intended to encourage innovative, cost-saving and sustainable building techniques, including prefabricated and modular elements.

Impact: Businesses must ensure that they are in compliance with the new rules including:

• providing digital product passport information

• meeting new environmental sustainability requirements

• compliance with updated product safety requirements 

Businesses may also have to meet specific obligations according to their roles as manufacturers, importers or distributors.

The new rules will apply from 8 January 2026, with the exception of specific provisions including those relating to development of harmonized standards, assessment and verification systems and market surveillance, which will apply from 7 January 2025.

European Commission bans Bisphenol A in food contact materials 

On 19 December 2024, the European Commission announced the adoption of a ban on the use of Bisphenol A (BPA) in products that come into contact with food or drink. 

BPA is a chemical used in the manufacture of certain types of plastics and resins. There is already a ban on its use in infant bottles and similar products in the EU. The new rule means that BPA must no longer be used in products such as coatings on metal cans, reusable plastic drinks bottles, water coolers and other kitchenware. Other bisphenols found to be harmful have also been included in the ban.

Impact: Businesses will have an 18-month transition period during which they must adapt their production to comply with the new rule. There will be limited exceptions to the ban, where no alternative products exist.

UK

Government plans new Defence Industrial Strategy 

On 2 December 2024, the Government published its Defence Industrial Strategy -Statement of Intent, intended to send an early market signal to business on the Government's planned direction of travel.

The strategy is being developed around six priorities, including prioritization and promotion of UK based business, and creation of new research and industrial ventures between government and business. The Ministry of Defence will first replace the Defence Suppliers Forum with a new Defence Industrials Joint Council, which will include the largest defence companies, and also bring in wider participation from the tech sector, SMEs, universities, further education, and the relevant trade unions.

The Defence Industrial Strategy will be published in late Spring 2025, and its remit will extend to 2035.

Impact: The Government will undertake a consultation with the sector in due course. Stakeholders, including industries outside of the defence sector (particularly those in the tech sector), are being invited to respond to the Statement of Intent by 28 February 2025, inviting their views on how to shape the policies.

US

New tariffs on imported steel and aluminum

On 10 February 2025, President Trump raised tariffs on all imported steel and aluminum to a flat rate of 25% (from the previous rate of 10%) “without exceptions or exemptions”. Existing country exceptions, quota deals and product-specific tariff exclusions for both metals have been eliminated under the new rules, which now also extend to downstream products using foreign-made steel. This includes products such as fabricated structural steel, aluminum extrusions and steel strand for pre-stressed concrete. To prevent imports of minimally processed metals, a requirement for steel imports to be “melted and poured” in the US is also introduced.

Impact: The new tariffs will apply from 12 March 2025. They will raise costs for businesses importing steel and aluminum materials, and have potential to disrupt supply chains as companies try to find alternative suppliers. Importers will need to ensure compliance with the new rules, including providing documentation to verify the origin and processing of steel articles.

Government finalizes rule to ban Chinese and Russian software in connected and autonomous vehicles 

On 14 January 2025, the US Department of Commerce's Bureau of Industry and Security (BIS) finalized new rules to prohibit the sale or import of certain hardware and software made in China, Russia, and other similar countries.

The rule focuses on products integrated into the Vehicle Connectivity System (VCS) and Automated Driving System (ADS). It prohibits the import of VCS hardware or connected vehicles containing such hardware, and the import and sale of vehicles containing VCS or ADS software, with sufficient links to China or Russia. Manufacturers linked to China or Russia are also prohibited from selling new connected vehicles equipped with ADS or VCS software, even if the vehicles have been manufactured in the United States.

The final rule applies only to passenger vehicles (defined as those under 10,001 pounds), reflecting the complex nature of the current commercial vehicle supply chain. BIS intends to issue separate rules applying to the technologies in commercial vehicles in the near future.

Impact: The rules require automotive manufacturers and suppliers to verify that the connected vehicle or advanced autonomous vehicle software used in their products has not been developed in China, Russia, or other similar countries. Certain importers and manufacturers are required to submit annual Declarations of Conformity to certify their compliance with the prohibitions.

Rules will take effect from model year 2027 for software-related prohibitions, and from model year 2030, or January 1 2029 for hardware-related prohibitions.

Memorandum of understanding coordinates chemical safety

On January 13, 2025, the US Environmental Protection Agency (EPA) announced that it signed a memorandum of understanding (MOU) with the Occupational Safety and Health Administration (OSHA).

The MOU aims to improve information sharing and coordination between the two agencies. It plans to protect workers and the environment from chemical hazards. EPA will handle prioritisation, risk evaluation, and rulemaking. OSHA will provide input and enforce workplace safety standards. Both agencies will share updates and coordinate outreach efforts.

Impact: Businesses may want to use the MOU as an opportunity to ensure familiarity with EPA and OSHA regulations on chemical safety. They should ensure compliance with both EPA and OSHA standards to avoid penalties that might arise from the agencies working more closely.

Businesses may want to refresh training for any employees handling chemical substances and ensure their processes are up to date.

Environmental Protection Agency announces workplace safety requirements for carbon tetrachloride 

On 11 December 2025, the Environmental Protection Agency (EPA) finalized a rule to implement safety programs to provide workers with protection from harmful effects of carbon tetrachloride (CTC).

CTC is a solvent used in the manufacture of other chemicals, including those used in refrigerants, aerosol propellants and foam-blowing agents. It is already banned for use in consumer products.

While updating safety rules for continued use of CTC in certain cases, the new rule now completely bans the use of the chemical in specific cases where the EPA has found it presents an unreasonable risk. This includes use as an additive in fuel and plastic components used in the automotive industry.

Impact: Businesses continuing to use CTC for accepted use cases must comply with the new workplace controls, which have phased implementation deadlines from 11 June 2026 – 3 December 2027. This includes implementing a Workplace Chemical Protection Program, to include specific inhalation exposure limits and dermal protection. Businesses must also ensure they comply with recordkeeping and customer notification obligations, beginning from 18 February 2025.

Government announces increased export controls on semiconductor manufacturing equipment 

On 2 December 2024, the US Department of Commerce's Bureau on Industry and Security announced a new package of rules designed to restrict China's capability to produce advanced-node semiconductors that can be used in the next generation of advanced weapon systems and in artificial intelligence and advanced computing.

Controls under the new rules cover: 24 types manufacturing equipment and 3 types of software tools for developing or producing semiconductors; new controls on high-bandwidth memory; new red flag guidance to address compliance and diversion concerns; 140 Entity List additions and 14 modifications spanning PRC tool manufacturers, semiconductor fabs, and investment companies involved in advancing the Chinese government’s military modernization. The rules also introduce a number of regulatory changes to previous controls.

Impact: Businesses involved in advanced computing and semiconductor manufacturing must ensure they are in compliance with the new rules, including carrying out necessary due diligence and monitoring, and obtaining licenses for controlled items where required.

The rules are effective from 2 December 2024, but with a delayed compliance date of 31 December 2024 for certain controls.

Further reading:

• Tariffs and Trump 2.0 - the art of the deal or the end game?
• New BIS rule on connected cars: Prohibitions on technology from Russia and China
• China: New Policies Boost Low-Carbon Hydrogen in Industrial sector | Eversheds Sutherland
• Global Supply Chain Horizons - December 2024 | Eversheds Sutherland

Co-authored by Claire Webb (Knowledge)