Australia’s treasurer on Monday has again told investors with Chinese connections to dispose of shares in a domestic rare earths company with A$53.3 million (US$38.2 million) in total assets. The move suggests the country intends to tighten its grip on local control of the rare earths market, as global supply chains shift and the United States taps Australian sources.

Analysts said the move may be Australia’s way to diversify its rare earth supply chain, but that it does risk retaliation from China.

Treasurer Jim Chalmers made “further disposal orders” for investors in Perth-based Northern Minerals, the firm said on its website and to the Australian Securities Exchange.

Invoking the country’s Foreign Acquisitions and Takeovers Act, Chalmers called for Chinese investors and companies to shed about 1.68 billion shares, or 17.6 per cent of the company’s total, according to Northern Minerals. The divestments must be made within 14 days.

The order targets two people and four companies: Hong Kong Ying Tak; Real International Resources; Qogir Trading & Service; and the mining company’s largest investor, Vastness Investment Group.

Beijing-based Vastness was directed to dispose of interests in 271 million ordinary shares that it acquired in September 2024, according to the Chinese firm.

Australia’s treasurer had earlier given “interim directions” to prevent the transfer or voting of Hong Kong Ying Tak’s shareholdings, Northern Minerals said in a statement in April. In Beijing, the Ministry of Foreign Affairs spokesman Guo Jiakun on Monday urged Australia to “respect the legitimate rights and interests of Chinese investors” while offering a “non-discriminatory” business environment for foreign investment.