China Cracks Down More Curbs On Rare-Earth Technologies Exports

On Thursday, October 9, China announced further export controls on rare-earth technologies, stating that unnamed foreign firms are using its supplies for military purposes. The Ministry of Commerce, China, said that it would impose restrictions with immediate effect on Rare-Earth technologies exports

Rare-earth technologies and their carriers, smelting and separation, metal smelting, magnetic material manufacturing, and the recycling and utilization of rare earths through secondary sources, will not be allowed without approval.
Significantly, China’s rare earth metals are in trending demand as the US, EU, and India are it top importers.China’s new curbs on rare-earth technologies emerged as a planned meeting between US President Donald Trump and Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation forum in South Korea (APEC) later this month.

Rare earths have also become a significant part of India-China talks in recent months, whereas relations between the two countries have enhanced after the August 31 meeting between Chinese President Xi Jinping and PM Narendra Modi in Tianjin. Beijing has not relent on its restrictions on rare earths exports to India, which implicitly affects India’s automobile industry.

Furthermore, the Ministry of Commerce, China, said: “Some overseas organisations and individuals are directly processing rare earth items originating in China and then transferring or providing them to relevant organisations and individuals. The items were directly or indirectly used in sensitive areas like  military operations, causing significant damage or potential threats to China’s national security and interests.

China fastened controls on the export of specific minerals in July 2023 and increased the number of rare earths subject to these controls since then. Apart from the US and India, the European Union too has been negotiating hard to lift the curbs.