China issues rare earth regulations to further protect domestic supply
June 29, 202421
China already last year introduced restrictions on exports of the elements germanium and gallium, used widely in the chip-making sector, citing the need to protect national security and interests.
China has unveiled a list of rare earth regulations aimed at protecting supplies in the name of national security, laying out rules on the mining, smelting and trade of the critical materials used to make products, from magnets in electric vehicles to consumer electronics.
The rules, effective October 1, declare rare earth resources state-owned and require companies to track and record production, smelting, and trade.
”Enterprises in rare earth mining, smelting and separation, and the export of rare earth products shall establish a product flow record system, shall “truthfully” record the flow, and shall enter it into the traceability system,” the State Council said.
China dominates global rare earth production, accounting for nearly 90%.
The EU, reliant on rare earths for its green transition, has set targets to boost domestic production.
China’s move raises concerns about supply restrictions, potentially straining relations with the West, particularly the US.
Those rules fanned fears that restrictions in rare earth supplies might help increase tensions with the West, particularly the United States, which accuses China of using economic coercion to influence other countries.
Beijing denies the claim.
The regulations come as the EU prepares to impose tariffs on Chinese electric vehicles, accused of being produced with unfair state subsidies.
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