China tightens rare-earth export curbs amid tension with U.S.
Traders required to provide information on types, shipment destinations
A rare earths mine in China's Inner Mongolia autonomous region. © Reuters
SHUNSUKE TABETA, Nikkei staff writerNovember 7, 2023 18:36 JST
SHANGHAI -- China will tighten export controls on rare earths, requiring exporters to report rare-earth types and their export destinations, Beijing announced Tuesday, against a backdrop of domestic calls for a response to stricter limits on U.S. semiconductor exports to China.
The new restrictions are set to run through the end of October in 2025. Observers say China's move to tighten its grip over the strategic materials may be a negotiating tactic ahead of a planned November summit between Chinese President Xi Jinping and his U.S. counterpart, Joe Biden.
China's commerce department announced that it had added rare earths, including compounds and alloys, to its list of mineral resources and other items requiring disclosure of information such as material type and export destinations.
China accounts for 70% of the world's output of rare earths, which are essential for the manufacture of electric vehicles and some weapons, including missiles. The U.S., which has developed its own mines for some critical minerals, has risen to become the world's second-largest producer. But it lacks sufficient smelting capacity, forcing it to export raw materials to China for processing before reimporting them.
China slashed rare earth exports to Japan in 2010 when the two countries were at loggerheads over the Senkaku Islands, which Tokyo controls but China also claims and calls Diaoyu. Japan, the U.S., and the European Union filed a complaint over the restrictions with the World Trade Organization (WTO) in 2012. Two years later it was found in violation of WTO rules, and China eliminated export quotas and other measures.
In recent years, the U.S. has sought to work with allies to tighten exports of top-end semiconductors and chipmaking equipment to China. Beijing began considering banning exports of manufacturing technology for high-performance magnets and other products that use rare earths at the end of last year. Given the increasing U.S.-China friction, the Chinese government began restricting exports of gallium, a semiconductor material, in August.
The U.S. and China have agreed in principle to a face-to-face meeting between Biden and Xi in mid-November, and the leaders may discuss the export restrictions and how to manage the two countries' rivalry at the summit.
China tightens rare-earth export curbs amid tension with U.S.
Traders required to provide information on types, shipment destinations
asia.nikkei.com
