China tightens controls on rare earth technology exports
Beijing also barred Chinese firms from cooperating with overseas companies on rare earths without prior approval
ANKARA
China on Thursday unveiled a new set of regulations placing “controlled measures” on rare earth–related exports, widening limits on processing and manufacturing technologies and prohibiting cooperation with foreign companies without prior government authorization, state media reported.
The Commerce Ministry said the measures aim to safeguard national security and interests by imposing export controls on rare earth–related technologies, including mining, smelting and separation, magnetic material production and recycling of secondary resources, according to the English-language Global Times daily.
Technologies and related data involving rare earth mining, smelting and separation, metal smelting, magnetic material manufacturing and rare earth secondary resource recycling, as well as the assembly, maintenance and upgrading of related production lines, cannot be exported without official permission, the ministry said.
The move follows sweeping controls introduced by Beijing in April that triggered global shortages before new deals with Europe and the US resumed shipments.
Under the new rules, foreign organizations and individuals must obtain licenses from the Commerce Ministry before exporting certain items — including rare earth permanent magnets and target materials manufactured abroad — if they contain or integrate rare earth metals or oxides originating from China, and if those Chinese materials account for at least 0.1% of the item’s total value.
The ministry also barred Chinese firms from working with overseas companies on rare earth projects without prior authorization.
"For non-controlled goods, technologies, or services, if the exporters know that they will be used for or substantially contribute to overseas activities related to rare earth mining, smelting and separation, metal smelting, magnetic material manufacturing, and rare earth secondary resource recycling, then they must apply for a dual-use item export license from the MOFCOM (Commerce Ministry) prior to exportation, in accordance with laws and regulations," the ministry said.
Unauthorized provision of such items is prohibited, it added.
China produces over 90% of the world’s processed rare earths and magnets, which are critical for products ranging from electric vehicles to aircraft engines and military radars.
*Writing by Aamir Latif
