- Global demand rises for medium and heavy-rare earths.
- China commits to responsible export controls and dialogue.
- Rare earths are key in ongoing US-China trade talks.
China has given the green light to several qualified rare earth export applications and is ready to engage in deeper discussions with other countries about export controls. This strategic resource continues to play a crucial role in Beijing’s trade talks with Washington, reports SCMP.
China Notes Growing Global Demand for Rare Earths
In a statement posted on its official website on Saturday, the Chinese Ministry of Commerce said: “We have observed growing global demand for medium and heavy rare earths in civilian sectors such as robotics and new energy vehicles, as these industries continue to expand.”
Commitment to Responsible Export Controls
The ministry added that, as “a responsible major power”, China has taken into account the legitimate civilian needs of other countries, approved qualified export applications in accordance with the law, and will continue to strengthen its compliance review process.
“China is willing to enhance communication and dialogue with relevant countries on export controls in order to facilitate compliant trade,” the statement read.
Rare Earths at the Center of US-China Trade Negotiations
Rare earths have long been a key bargaining chip for China in its negotiations with the United States, and they continue to be a central issue in the ongoing trade tensions between these two global powers. This week, when Vice-Premier He Lifeng meets with US trade and Treasury officials in London, China’s rare earth export controls are expected to be a hot topic. This meeting comes on the heels of his leadership of the Chinese delegation during the negotiations in Geneva back in May.
According to a social media update from US President Donald Trump on Friday, the US delegation will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer.
Vice-Premier He’s Visit to the UK and China-US Trade Talks
The Chinese foreign ministry announced on Saturday that Vice-Premier He will be in the UK from Sunday to Friday, invited by the British government, to take part in the China-US economic and trade consultation mechanism.
China to Speed Up Rare Earth Exports to Europe
In a separate announcement, the commerce ministry expressed its readiness to expedite the review and approval process for rare earth exports to European companies. This follows a recent meeting between Chinese Commerce Minister Wang Wentao and European Union trade chief Maros Sefcovic at a World Trade Organization event in Paris.
China’s Leading Role in Rare Earth Production
China continues to dominate the rare earth market, producing about 70 per cent of the world’s supply and refining around 90 per cent of these vital minerals. Rare earths are crucial for the production of consumer electronics, electric vehicles, and advanced defence systems.
Temporary Export Licenses for US Automakers
According to a Reuters report citing unnamed sources, China has issued temporary export licenses to rare earth suppliers for the top three US car manufacturers, with some licenses being valid for up to six months.
Xi-Trump Call Sparks Optimism on Rare Earth Flow
Following a long-awaited call between Chinese President Xi Jinping and US President Donald Trump, Trump confirmed on Friday that Xi had “agreed to let rare earth minerals and magnet flow” to the US.
Leah Fahy, China economist at Capital Economics, noted: “One immediate consequence might be that China will step up export licence approvals for rare earth elements.” She added: “Still, global access to [rare earth elements] will remain more restricted than it had been, pushing other countries to invest in alternative sources of supply.”
Uncertainty Over Lifting Export Controls
After the high-level US-China talks in Geneva on May 10 and 11, Beijing was widely expected to remove export controls on seven critical minerals imposed on April 4 amid the tariff dispute. The curbs require all exporters to apply for permits before shipping minerals overseas. However, China has yet to confirm whether it will lift the restrictions. Washington has accused China of failing to fulfil the commitment it made in Geneva.
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Source: SCMP
