China issues new rare earth export licenses

VTV.vn - According to Reuters, Chinese authorities have just begun issuing the first rare earth export licenses under the country's new management mechanism.

According to sources, at least three major Chinese rare earth magnet manufacturers have received new licenses and if the situation develops favorably, authorities may expand the licensing to more units.

The new type of license is issued per customer and is valid for one year, allowing businesses to avoid having to apply for a license for each shipment, helping to speed up export flows and reduce pressure on international customers.

Since April, China has tightened export licensing requirements for shipments of rare earth materials, causing a supply shortage that has affected many sectors, especially the automobile manufacturing industry.

Rare earths are essential to the production of smartphones, electric cars, wind turbines, jet engines, rockets and data centers... China's dominance in rare earths dates back to the 1980s, when the country began to build a near-monopoly in both mining and, more importantly, refining rare earths.

According to the International Energy Agency (IEA), by 2024, China will account for about 60% of global rare earth mining output and 91% of refining output. On November 19, Reuters quoted a report by consultancy Benchmark Mineral Intelligence predicting that Western markets will still depend on China for up to 91% of heavy rare earth supply by 2030.

EU declares war on China's rare earth protection policy

On December 3, the European Union (EU) announced a plan to end the 27-nation bloc's dependence on China for rare earths, as Beijing's tight control threatens key industries on the old continent.

EU Industry Commissioner Stephane Sejourne has called on the bloc to “take strong action” against what he described as a form of “protectionism” imposed by Beijing. The new plan aims to push the EU to accelerate joint procurement of strategic raw materials, including rare earths; speed up production and recycling in Europe; work with trusted partners and sign new agreements.

The EU executive will also propose next week the creation of a European Centre for Strategic Raw Materials, which would serve as the bloc's supply hub, modelled on the Japan Oil, Gas and Metals National Corporation (JOGMEC).

China, the world's top producer of rare earths, announced export controls on the group of elements in October. Rare earths are used to make magnets vital to the auto, electronics and defense industries. The move shocked markets and disrupted supply chains, before China later announced it would suspend restrictions for a year. Since April, Beijing has required licenses for some materials, affecting global manufacturing.

The EU is now under double pressure between Chinese restrictions and the US administration under President Donald Trump, which is negotiating bilateral deals on multiple fronts to secure its own supplies to Washington.

Source: https://vtv.vn/trung-quoc-cap-giay-phep-xuat-khau-dat-hiem-moi-100251203160319285.htm