China promises faster permits for export rare earths!
China promises faster permits for export rare earths!
China has announced that the applications for European companies to export rare earths to export rare earth in the future. This became known after a meeting of China's Minister of Commerce Wang Wentao with the EU trade commissioner Maros Sefcovic in Paris. Wang signaled that China takes the concerns of the EU seriously and wants to set up a “green channel” for applications that meet the conditions. This initiative could help to make it easier to trade in high-tech products, which is important for both sides, especially for the heavily affected auto industry and mechanical engineering.
In April 2025, China introduced export controls for seven rare earths. The affected metals are crucial for numerous industrial applications, including in the automotive and defense industry. Companies then had to go through an elaborate application process, which triggered concern worldwide, especially in Europe and the USA. The EU Chamber of Commerce confirmed a slight improvement in the situation regarding export permits and reported that its member companies recently received more licenses. Nevertheless, the Federal Association of German Industry (BDI) warns of possible production stops and a metal crisis.
reactions to the export controls
The new export restrictions of China have already led to production failures in the automotive industry. According to reports, companies such as Suzuki have stopped producing certain models due to raw material bottlenecks. Suppliers in Europe also report that manufacturing lines have come to a standstill. This shows how critical rare earths are for the production of modern technologies because they are indispensable for engines and sensors.
In addition to the companies concerned, US President Donald Trump also expresses himself dissatisfied with Chinese raw material policy. In a conversation with China's President Xi Jinping, he announced that there should be no problems with the rare earths. Despite these statements, China mentioned no discussions about rare earth in his message after the phone call. Trump spoke of a meeting in London, to which there is no confirmation from Beijing.global effects and strategic measures
The effects of export controls are far -reaching. The EU has taken measures with the Critical Raw Materials Act to significantly increase its own use of strategic raw materials by 2030. This includes the opening of new mines, the establishment of trading partnerships as well as environmental protection measures and recycling systems. It shows that the infrastructural requirements and the time processes for these measures are lengthy and costly.
china remains the largest processor less frequently and exports almost all quantities available on the market. The government explains the strict export controls with the dual usability of the metals for military and civilian applications. At the same time, the economic importance of exports for China itself goes hand in hand, since it has a trade surplus of almost a trillion USD and more exported than imported.
The dependence on timely and clear approval procedures is crucial for many companies. An analysis of the dependencies and risks is considered necessary in order to identify potential supply bottlenecks and to be able to better manage. The topic of rare earths will also be the focus of future trade talks between the USA and China.
For a more comprehensive view of the export controls and their effects on the global markets, visit , n-tv and esm foundation .
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| Ort | Paris, Frankreich |
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