China has released new interim measures to tighten controls on the mining and processing of rare earths, a crucial component in high-tech products such as electric vehicles, smartphones, and fighter jets. The rules apply to both domestic and imported rare earths, requiring companies to obtain government approval and report accurate production levels.
The move is aimed at boosting national security and reducing reliance on foreign suppliers, particularly the US. China now supplies 90% of the world’s rare earths, while the US relies heavily on Chinese imports, with 70% coming from Beijing in 2024.
The new regulations centralize controls on mining, exports, and processing, impose stricter environmental standards, and tighten licensing requirements for companies dealing with rare earths. Violators will face penalties, including reduced quotas.
Beijing’s tightening grip on the industry follows recent US concessions on access to computer chip design software and jet engines. China has also cracked down on alleged smuggling of rare earths materials, indicating a growing effort to exert control over the global supply chain.
The rules do not specify exact quotas for production and export or particular elements, but they strongly suggest Beijing’s commitment to tighter controls. The US has called on China to ease its restrictions, while China is adjusting its approach as needed.
Source: https://abcnews.go.com/Technology/wireStory/chinas-new-regulations-rare-earths-124877039