The Chinese government has banned South Korean companies from supplying products containing Chinese rare earth elements to US defense enterprises, and has also warned of sanctions in case of non-compliance with these requirements. This is reported by Korea Economic Daily, citing sources in the government and companies, reports UNN.
Details
According to sources, some companies that manufacture transformers, batteries, displays, electric vehicles, aerospace and medical equipment received official notifications from the Chinese Ministry of Commerce on Tuesday, April 22, requiring them to restrict the export of any energy equipment.
The letter also contained warnings about possible sanctions in case of violation of export restrictions
Companies fear that Beijing may block the sale of metals
It is noted that this is the first time that Beijing has officially adopted export controls against non-American companies from leading economic countries in the world and started with Korea.
The South Korean Ministry of Industry said on Wednesday that it is checking this information with the Chinese government and domestic companies.
At the moment, it has not been confirmed that South Korean companies have received an official letter from the Chinese government, as stated in the message
In early April, China imposed restrictions on the export of rare earth elements as part of a broad response to US tariffs. The restrictions affected the supply of minerals used in the production of weapons, electronics and consumer goods.
From now on, exporters need to apply for a license to the Ministry of Commerce of the People's Republic of China - this is an opaque procedure that can take from 6-7 weeks to several months.
China produces about 90% of the world's rare earth elements - a group of 17 chemical elements. The US government has some reserves of such elements, but they are not enough to provide the military-industrial complex in the long term.
Let us remind you
China is stepping up measures in response to US tariffs, expanding the list of goods subject to tariffs and restricting the export of minerals.