China has tightened curbs on rare earths to include items manufactured abroad, adding another layer of restrictions on an industry that’s been a source of friction between Beijing and Washington.
Overseas exporters of items that use rare earths sourced from China will need to obtain an export license from the country’s Ministry of Commerce, according to statements from the ministry on Thursday.
Technologies related to the extraction of rare earths, the manufacturing of magnets and the recycling of the minerals will be banned unless permitted by the ministry. Military uses won’t generally be approved, while exports of some rare earth items used in semiconductors research and development will be reviewed on a case-by-case basis, the ministry said.
It’s unclear how the Chinese government plans to enforce the new restrictions. Rare earths have an array of applications that make them vital to high-tech industries including autos and defense.
The minerals have been a flashpoint in a debilitating trade war between the US and China. Beijing has used its control of the sector — China accounts for about 70% of global supply — as leverage in negotiations with Washington.
{{/usCountry}}The minerals have been a flashpoint in a debilitating trade war between the US and China. Beijing has used its control of the sector — China accounts for about 70% of global supply — as leverage in negotiations with Washington.
{{/usCountry}}China’s exports of rare earth products, including magnets, have recovered in recent months after Beijing threatened a disruptive global shortage by crimping supplies to demonstrate its leverage over the US.
The country is now expanding its restrictions just weeks before President Donald Trump and Chinese leader Xi Jinping prepare to meet in person, adding potential tension just as the two sides seek to strike a broader trade deal.