China has announced a tightening of rare earth technology exports, thereby expanding restrictions that have been a source of tension between Beijing and Washington. This is reported by Bloomberg, according to UNN.
Details
According to a statement released on Thursday by China's Ministry of Commerce, the export of technologies related to rare earth mining, magnet production, and the processing of such metals is prohibited without proper authorization.
Technologies related to these areas cannot be exported without the ministry's approval. Their use for military purposes will generally not be approved, while the export of some rare earth materials used in semiconductor research and development will be considered individually
As Bloomberg writes, it is still unclear how the Chinese government plans to enforce the new restrictions.
It is noted that rare earth metals have a wide range of applications, which makes them extremely important for high-tech industries, including the automotive and defense industries.
Mineral resources have become one of the key elements of the exhausting trade war between the US and China. Exports of rare earth metals from China, including magnets, have increased in recent months after Beijing threatened to create a shortage in the global market by cutting supplies to demonstrate its influence on the US
The country is now expanding restrictions just weeks before a face-to-face meeting between President Donald Trump and Chinese leader Xi Jinping, which increases potential tensions at a time when both sides are seeking to conclude a larger trade deal.
Beijing uses its control over the industry (China accounts for about 70% of global supplies) as leverage in negotiations with Washington.
Recall
It was previously reported that China is introducing new measures to regulate the mining and smelting of rare earth elements, including imported raw materials into the quota system. This strengthens control over their supply, causing concern among companies.