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China Unveiled sweeping new restrictions on foreign exports of rare earth To strengthen its dominance in the critical minerals supply chain, incorporating goods produced abroad. The trade dispute with Washington is already deep.
The new regulation on Thursday by China’s commerce ministry clarifies and expands sweeping restrictions first announced in April, leading to massive shortages around the world ahead of a series of deals with Europe. We Shipment resumes.
China, for the first time, is creating its own version of the US foreign direct product rule, which Washington has used to curb semiconductor exports to China from third countries.
Under the new rules, foreign exporters will have to export goods that include small quantities of rare earths obtained from china or manufactured using its rare earth extraction or refining technology, will need to obtain an export license from the country’s commerce ministry.
The new requirements are meant to protect “national security” and interests as well as “prevent the misuse of rare-earth materials in military and other sensitive areas.”
The Commerce Ministry said it has identified foreign companies that pose a serious threat to China’s security by transferring Chinese-origin rare earth materials and technology to others for military purposes.
Rare earths are important materials in products ranging from electric vehicles to aircraft engines and military radar. They have emerged as a key sticking point in crucial trade talks between China and the US to ease tensions after Donald Trump imposed record tariffs on Beijing.
China contributes about 60 percent of global mining production and 90 percent of processed and permanent magnet production. Beijing has used its control over the region as leverage in negotiations with the US administration.
it comes next Mr Trump and Chinese President Xi Jinping are expected to meet later this month.
“Certain foreign organizations and individuals are directly or indirectly transferring or supplying rare earth controlled commodities of China origin either in their raw form or after processing,” the ministry said, stressing that such commodities have been used in sensitive sectors such as defence.
“Such actions have a negative impact on international peace and stability,” it said.
It said the ban on the export of rare earth magnet making technology would be extended to more types of magnets.
Equipment used to recycle rare earths will also now require an export license, adding to the growing list of restricted rare earth processing technologies.
The announcement clarified for the first time some of the targets under China’s control.
Foreign defense users will be refused licenses, while applications related to advanced semiconductors will be considered on a case-by-case basis.
Chinese companies operating abroad are also prohibited from collaborating on rare earths with foreign companies without ministry approval. This would mark the first extension of Beijing’s jurisdiction over materials used by China abroad.