“A matter of national security. Tension increases with the United States. EU concerned: “We expect Beijing to act as a reliable partner and guarantee stable and predictable access to critical raw materials”
Beijing – China has decided to tighten controls on the export of rare earths and related technologies, expanding the restrictions that have long been a critical issue in trade relations with the United States. The Chinese Ministry of Commerce announced that the export of technologies related to the extraction, smelting, separation, production of magnets, and recycling of rare earths will be prohibited, except with specific authorizations. The new measures, which came into effect immediately, aim – according to the government – to protect national security and interests through stricter controls on strategic products and technologies. The restrictions also concern techniques for the assembly, maintenance, and modernization of production lines. Exporters will now have to request special licenses for dual-use products, meaning those with potential civilian and military applications.
The issue of rare earths continues to be a source of tension in negotiations between Beijing and Washington. The United States accuses China of slowing down the approval of export licenses, while Beijing remains the world’s leading producer of these minerals, which are essential for the automotive, electronics, and defense industries. In a further communication, the Ministry of Commerce indicated that new restrictions will be imposed on foreign entities that re-export products derived from Chinese rare earths to countries or areas considered sensitive, particularly those involved in military operations. The government argued that such practices represent a threat to national security and can have destabilizing effects on international peace.
For decades, China has dominated the rare earth supply chain thanks to massive investments in refining and thousands of patents, although often at the expense of the environment. This competitive advantage has made it cheaper for many countries to send raw minerals to China for processing. Meanwhile, the United States and the European Union are working to increase their own production and improve the recycling of strategic materials, in an attempt to reduce dependence on Beijing.
“We are concerned about the announcement and are analyzing the details: the European Commission expects China to act as a reliable partner and guarantee stable and predictable access to critical raw materials.” This was stated by the spokesperson for the EU executive for Trade, Olof Gill. “During the EU-China summit in July – he recalled – the parties agreed to strengthen trade relations by increasing transparency and providing guarantees to EU companies, particularly in the sector of magnets and rare earths.”
