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China tightenscontrol over rare earths

China wants toprotect its rare earth deposits in the name of national security. Rules havebeen laid down for mining, processing and trade.

Beijing. China is tightening state control over the globally coveted rare earth metals. On Saturday, the government published regulations aimed at protecting China's rare earth deposits in the name of national security. Rules have been laid down for mining, processing and trading.

Rare earths are needed for electric cars, among other things. China is the world's largest processor of this group of 17 elements, the demand for which is forecast to multiply by 2030 in the EU alone.

The regulations issued by the State Council on Saturday state that rare earth resources belong to the state and that the government will oversee the development of the industry. Companies that mine, smelt, separate or export rare earths are to set up a traceability system.

The rules are due to come into force on October 1. The announcement comes amid the EU's plans to impose provisional tariffs on Chinese electric cars. The EU wants to protect itself from a flood of such vehicles in Europe, which it believes are being built cheaply with unfair state subsidies. The USA has already introduced special tariffs for Chinese electric cars.

Last year, China introduced restrictions on the export of the elements germanium and gallium, which are used in the chip industry. This was justified on the grounds of national security and national interests. The move fueled concerns that this could exacerbate tensions, particularly between the US and China.