Strengthens its dominant position. China announced on Thursday, with immediate effect, new controls on exports of technologies linked to rare earths, strengthening its regulations in this sector, at the center of tensions with Washington, but also with Brussels.
The Asian giant is the world’s leading producer of these essential materials for digital technology, automobiles, energy and even weapons.
Since April, China has established a licensing system for certain exports of these rare earths, a decision that has caused turbulence in several of these sectors on a global scale.
Rare earths have also been a major sticking point in recent trade talks between China and the United States, with Washington accusing Beijing of deliberately delaying approval of export permits.
The new controls announced on Thursday now refer to the export of technologies linked to the extraction and production of these materials, the Ministry of Commerce indicated in a press release.
This new regulation, of immediate application, refers to the technologies used for “the assembly, adjustment, maintenance, repair and modernization of production lines,” he added.
Extraterritorial restrictions will also be imposed on entities exporting items produced from Chinese rare earths or Chinese rare earth technologies, the ministry said in a separate statement.
Specifically, foreign exporters must obtain prior authorization before shipping, but any export request intended for foreign military customers will be systematically rejected, he stressed.
“Potential threat”
This practice has “seriously harmed or posed a potential threat to China’s security and national interests,” he said.
China dominates rare earth mining and refining, giving it a significant advantage amid trade tensions with the United States.
In a 2024 report, the United States Geological Survey estimated global reserves at 110 million tons, of which more than a third, 44 million tons, were in China.
For decades, China has invested heavily in the sector.
It has also filed a considerable number of patents related to the production of rare earths. This constitutes a major obstacle for foreign companies wishing to start their own large-scale transformation activities.
Therefore, many foreign companies prefer to send their rare earths to China for refining, reinforcing global dependence on the Chinese industry.
Europe too
Restrictions imposed this year by Beijing have caused major disruptions to global industries, with some companies forced to suspend production amid shortages of these strategic minerals.
Rare earths are also a sensitive issue between Beijing and the Old Continent. The president of the European Commission, Ursula von der Leyen, reported in July an agreement with China on an “improved” export mechanism to, according to her, provide a quick solution to a supply problem.
But the European Union Chamber of Commerce in China estimated in mid-September that many European companies still had difficulties accessing rare earths produced in the Asian country.
Source: BFM TV
