China's Commerce Ministry tightens rules on rare earths exports

Wait 5 sec.

China tightens rare-earth export rules, imposes new dual-use licensing from December 1China has announced sweeping new restrictions on rare-earth exports, requiring both foreign and domestic companies to obtain special licences for items with potential military applications, in a move that underscores tightening controls over materials critical to global technology and defence supply chains.The Ministry of Commerce said that from December 1, foreign firms and individuals seeking to export rare-earth products classified as “dual-use items” — materials with both civilian and military applications — must first secure a dual-use items export licence. Domestic exporters will also be required to declare the final destination country or region of shipments.In addition, the ministry said exports related to the design, development, production or use of weapons of mass destruction will not be approved, with that restriction taking immediate effect. Export applications to overseas military users and to importers or end-users on official watchlists will also be rejected in principle.The announcement comes amid heightened geopolitical competition over control of critical minerals used in semiconductors, electric vehicles, magnets, and advanced defence systems. China dominates global rare-earth production and has in recent years used export curbs as leverage in technology and trade disputes.Analysts said the latest measures could further strain supply chains and accelerate efforts by the U.S., Japan, and Europe to diversify sourcing and processing capacity for rare-earth elements. More:Some items cannot be exported without approvalThese include technologies and carriers related to rare earth mining, smelting and separation, metal smelting, magnetic manufacturing, and recycling of rare earth secondary resourcesChinese citizens, organizations shall not, without permission, provide any substantive assistance and support for overseas rare earth mining, smelting separation, metal smelting, magnet manufacturing This article was written by Eamonn Sheridan at investinglive.com.