Editorial | Amid rivalry with US, silver can be seen as China’s new industrial leverage
Beijing’s export controls are simply about following the logic of the market and geopolitics in the interest of the nation
The latest move is not just about silver, but an indication that China is refining its list of strategic materials beyond rare earths and is ready to protect its supply chains.
Like gold, silver is considered a store of value, but it also has significant industrial applications. Beijing’s new measure has implications for industries in defence, solar power, electric cars and batteries, among others. Beijing says it needs to protect domestic resources and the environment. But as the world’s second-largest producer of silver, it may worsen an existing global supply crunch thanks to rising demand.
Silver prices breached US$80 an ounce for the first time in December, before falling back to the US$70 range. The London silver and Shanghai silver prices recorded an accumulated increase of 175 per cent and 145 per cent, respectively, in 2025.
It’s now clear that Beijing is expanding its list of strategic materials, both to defend the nation’s own industrial and strategic needs and to incorporate it into its foreign economic policy. The new and more stringent regime, which replaces a long-standing quota system, will require firms to prove consistent production and/or export records. Tighter export controls will mean easier access and lower prices domestically, but may push them up outside the country.
The United States is a major importer of silver. China has agreed to a one-year pause on export curbs on some critical rare earths in response to lower tariffs from Washington. So silver may be seen as Beijing’s new industrial leverage in an ongoing superpower rivalry.