China, tightening up on exports of rare earths and related technologies
Beijing tightens control over exports of rare earths and related technologies, fuelling tensions with Washington and Brussels. New rules also affect foreign exporters
China tightens the rules for exports of rare earths and related technologies, expanding restrictions that have been a source of tension between Beijing and Washington. On technologies related to rare earth ore mining, magnet production, and rare earth recycling hangs an export ban unless explicitly authorised, according to a note published today by the Ministry of Commerce.
The new measures were taken with immediate effect to 'safeguard national security and interests' through controls on the export of technologies and products related to rare earths and their carriers, including 'extraction, smelting and separation, production of magnetic materials, and recycling of secondary resources, in accordance with relevant laws and regulations'. The clampdown also includes technologies used for 'assembly, adjustment, maintenance, repair and modernisation of production lines'. Exporters, the Ministry of Commerce pointed out, 'must apply for export licences for dual-use items' before the relevant shipments abroad.
Rare earths are still a major point of friction in recent trade negotiations between China and the US, with Washington accusing Beijing of slowing down export licence approvals. The Dragon is the world's largest producer of vital minerals for magnets essential to the automotive, electronics and defence industries.
In another announcement, the Ministry of Commerce clarified that additional restrictions would be imposed on foreign entities exporting related products outside of China: "For a certain period, certain foreign organisations and individuals have transferred or supplied, either directly or after processing, controlled rare earth products originating in China for direct or indirect use in sensitive areas such as military operations. The practice has caused "significant damage or potential threats to China's security and national interests and has had a negative impact on international peace and stability," a note reported.
For decades, Beijing has invested heavily in refining, often to the detriment of the environment, and has filed thousands of patents. Therefore, it is cheaper to ship the minerals to China for processing, strengthening the weight of the People's Republic. The US and EU have long been working to increase their own production and to better recycle strategic minerals in order to reduce dependence on Beijing.
