China has surprised the world many times with its decisions. Recently, China surprised the world with a decision regarding rare earth elements, and now it has implemented a new rule regarding silver. It is expected that this new rule will increase the prices of silver. Experts are also saying that silver is unlikely to become cheaper now, because this new move by China may reduce the global supply of silver and increase demand. In fact, China is a major controller of the global silver supply. China holds a large part of the world’s silver. Although it does only 13 percent of the mining, it controls 60 to 70 percent of the global silver supply in terms of refining and production.
Will China impose the same rules on silver as it did with rare earth elements?
Now, taking advantage of this, China has taken a big step regarding silver. China has implemented a rule to control the export of silver from January 1, 2026. Under this rule, no company will be able to export silver from China without a government license. This decision has created a stir across the world. The world is watching this decision of China in the same way as it watched Dragon’s actions regarding rare earth minerals.
To which companies will China give these licenses?
China has set some conditions for the export of silver. Only a few large, government-approved companies will be allowed to export, and they will also have to obtain a government license. To get a license, companies must meet important criteria such as production capacity and creditworthiness. Till now only 44 companies have received this permission.
What will be the impact of China’s decision?
Globally, China controls 60 to 70 percent of the silver supply. Therefore, as export controls increase, the availability of silver worldwide will decrease, and demand will continue to increase. This is happening at a time when industrial demand for silver has increased rapidly. This will lead to a rise in prices. The price of silver is near its record high and is expected to rise further.
Why is China doing this?
For China, silver is not just an industrial and investment commodity, but has also become a strategic asset. He can use it to make beneficial deals with other countries or to exert his influence. Experts believe that this is why China is increasing its control over silver. Apart from this, domestic demand for silver in China is also very high. China is the world’s largest manufacturer of solar panels, electronics and EVs. All these industries use silver in large quantities, which is why China has increased industrial demand and is exerting more control over the supply and export of silver to increase its dominance in many sectors across the world.