China announces 'we have approved some licenses'

In a statement from the Chinese Ministry of Commerce, it was noted that rare earth elements have properties for both military and civilian use, and that China applies export controls on these materials to protect its national security and interests, as well as to fulfill its obligations regarding the prevention of international proliferation.

The statement noted that with the development of certain industries such as robotics and electric vehicles in recent years, demand for medium and heavy rare earth elements in the civilian sector has been observed to increase, and that China, as a responsible country, understands the reasonable needs and concerns of different countries in this area and has reviewed export licenses accordingly.

The statement indicated that some export licenses have been approved and that the approval of other license applications that meet the requirements will continue, noting that China will strengthen communication and dialogue with relevant countries regarding export controls.

MEETS A LARGE PORTION OF GLOBAL SUPPLY

It is noteworthy that the statement regarding export controls came after the phone call between US President Donald Trump and Chinese President Xi Jinping on June 5.

The Washington administration had claimed that negotiations were stalled because Beijing did not lift the controls it imposed on the export of rare earth elements, despite the consensus reached in tariff negotiations.

China had imposed restrictions and controls on rare earth elements, for which it meets a large portion of the global supply, in response to the restrictions imposed by the US in the field of technology, especially in the chip sector.

Responding to the export restrictions imposed by the Biden administration in the chip sector in December 2024 by restricting the export of gallium, germanium, and antimony, China had imposed controls on the export of tungsten, tellurium, bismuth, molybdenum, and indium in response to the Trump administration's first tariff increase in February.

The Beijing administration had also added 7 categories of rare earth elements, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, yttrium, and their alloys, to its export control list in response to the tariff increases by the US under the scope of "reciprocal tariffs".

Producing approximately 90 percent of the 17 groups of rare earth elements, China had demonstrated its intention to turn its global dominance in this field into an economic trump card through export restrictions and controls.

News Source: AA