China introduces new restrictions on rare earth exports: Beijing has obliged companies that produce products containing more than 0.1% of certain Chinese raw materials to provide detailed information to Chinese suppliers about their further use. Thus, if a German company wants to export a product manufactured in Germany using Chinese raw materials, from December 1, it will need a license from Beijing, UNN reports with reference to Bild.
Details
According to the publication, companies that do not comply with the new rules face a suspension of supplies. But even those who carefully follow the new rules are not immune: the export permit is issued by the Chinese Ministry of Commerce, and often delays the decision.
China warns Western companies against hoarding rare earths15.08.25, 11:38 • [views_28262]
Europe, it seems, has nothing to respond to this now. BILD sent a list of questions on this topic to the German Ministry of Economy. A representative of the department stated that they are observing the "constant expansion of Chinese export restrictions" "with great concern." As the ministry admits, "dependence has been formed for a long time and cannot be eliminated in the short term."
Europe receives 98% of gallium, 95% of graphite and manganese, 81% of molybdenum, 77% of cobalt, most of lithium, titanium, vanadium and other rare metals necessary for high-tech production from China.
Threat to the military industry
Against this background, the Federal Union of German Defense Industry remains surprisingly unperturbed. Its CEO, Dr. Hans Christoph Atzpodien, sees no danger of supply disruption for his industry: "Absolutely not." According to him, given the "predictability" of the situation, one cannot speak of "dependence."
Dr. Amir-Said Hassabe, legal counsel and expert in international trade, strongly disagrees with this. He expects China to restrict supplies to EU military enterprises from December 1: "China fully controls how quickly, in what volume, and, most importantly, which [export] applications will be approved." The new rules, he said, are "a de facto enforceable export blockade with direct consequences for the defense industry."