La China has further tightened the rules for the export of rare earths and of the trelated technologies, a critical theme in trade talks with the United States and there are fears that new restrictions will not be well received by the White House.
Beijing announced today that it will add several new names for rare earths to its export control list, further strengthening controls on critical materials. Items such as holmium, erbium, thulium, europium, and ytterbium and related materials will be added to the existing watchlist, the Ministry of Commerce said in a statement, as reported by ReutersIn a separate statement, the Ministry also added to the watchlist dozens of devices for the processing of rare earths. On technologies related to theextraction of rare earth minerals, to the production of magnets and to Recycling of rare earths hangs the export ban, unless explicitly authorized, according to a note published today by the Ministry of Commerce.
The Chinese government had already introduced restrictions in April, causing a sudden reduction in availability in the rest of the world, later partially resolved with bilateral agreements with the European Union and the United States. China is the world leading manufacturer of minerals essential for magnets which are essential for the automotive, electronics and defense industries.
The topic of rare earths will be at the top of the agenda in the expected meeting in South Korea between US President Donald Trump and the Chinese leader Xi Jinping, at the end of October. Analysts are also looking ahead to the Communist Party meeting on October 20-23, during which the blueprint for the 15th Five-Year Plan will be outlined.
Chinese rare earth stocks surge
In China, just returned after the Golden Week vacation, the rare earth stocks have increased significantly: theThe mineral index rose to 4,7 percent., with Jiangxi Copper Co. and Shandong Gold Mining Co. which have been suspended due to excessive increase. China Northern Rare Earth listed in Shanghai is up 9%. Shenghe Resources Holding rose 7%, while shares of Jl Mag Rare-Earth listed in Shenzhen rose by more than 12%.
New restrictions adopted with immediate effect to "safeguard national security and interests"
Le new measures were adopted with immediate effect for "safeguard national security and interests", through controls on the export of technologies and products related to rare earths and their carriers, including "mining, smelting and separation, production of magnetic materials, and recycling of secondary resources, in accordance with relevant laws and regulations." The crackdown also includes technologies used for "assembly, adjustment, maintenance, repair, and modernization of production lines." Exporters, the Ministry of Commerce specified, "must apply for export licenses for dual-use items" before shipping them abroad.
Foreign entities exporting related products were also affected.
In another announcement, the Department of Commerce clarified that further taxes would be imposed restrizioni foreign entities and export related products outside China: “For a certain period, some foreign organizations and individuals have transferred or supplied, directly or after processing, rare earth products originating in China for direct or indirect use in sensitive areas such as military operationsThe practice has caused “significant damage or potential threats to China’s national security and interests and has had a negative impact on international peace and stability,” a statement said.
