Rare Earth Control, ETS Expansion and AI Plus

The Ministry of Industry and Information Technology (MIIT) and two other government agencies jointly issued Interim Measures for the Total Quantity Control and Management of Rare Earth Mining, Smelting and Separation. The measures require companies to establish a rare earth product flow record system and report their rare earth data monthly to a broader industrial traceability platform primarily managed by MIIT. This reporting duty covers all the smelting and separation of all rare earth mineral products obtained through mining, imports, and the processing of other minerals.

Chinais further upgrading its rare earth tracking system. Those using materialsextracted abroad and imported for smelting and separation in China will nowalso be closely monitored. This is likely to result in additional documentationrequirements and stricter compliance reviews for German companies to participatein the rare earth supply chain. They should hence prepare well to adapt to thissubstantial change. 

The General Offices of the Party Central Committee and the State Council issued guiding opinions to further expand the national Emissions Trading System (ETS). The major targets include: By 2027, the national ETS will cover all major high-emission industries through free allocation, while the national voluntary greenhouse gas (GHG) reduction market will achieve full coverage in key sectors. By 2030, China aims to establish a fully functioning national ETS with an overall cap on carbon emissions, combining both free and paid allocations.

Chinaset a clear timeline to develop its national ETS, shifting from anintensity-based system to an absolute emissions cap, and expanding coveragefrom selected key sectors to all major industries. This approach will helpcompanies—including Chinese suppliers to German companies—gradually adapt toevolving global standards in carbon pricing and reporting, such as the EU’sCarbon Border Adjustment Mechanism and other emerging international frameworks.

The Party Central Committee and the State Council issued the Opinions on Promoting High-Quality Urban Development. By 2030, significant progress is expected in building “modern, people-centered cities,” with marked improvements in living standards and green transition. By 2035, the vision of “modern, people-centered cities” should be basically realized. Measures include establishing a carbon footprint labeling and certification system for key building products, creating centralized energy supply systems for industrial parks, and accelerating the application of new building materials.

China’surbanization is shifting from large-scale expansion to high-qualitydevelopment. If this is implemented well at the ground level. This transitionwill create potential opportunities for German companies in green construction,energy-efficient building materials, smart urban infrastructure, and advancedurban management solutions.

The State Council released Opinions on Deeply Implementing the “Artificial Intelligence Plus (AI+)” Initiative. The Opinions outline a roadmap for advancing “AI +”: By 2027, the usage rate of new-generation intelligent terminals and AI agents should exceed 70%. By 2030, penetration of intelligent terminals and AI agents is expected to surpass 90%. In addition, the roadmap aims to achieve broad and deep AI integration across six key areas: scientific and technological innovation, industrial development, high-quality consumption, living well-being, governance capabilities, and global cooperation.

The “AI Plus” roadmapcharts China’s path toward a new phase of an intelligent economy andintelligent society. German companies can explore cooperation with domesticpartners to develop and implement AI solutions tailored to sectors such asmanufacturing, healthcare, and smart urban services. More details are expectedin the upcoming 15th Five-Year Plan.