China approves rare earth exports to South Korean firms? Key details disclosed by S. Korean media, which said they finally breathed a sigh of relief.
According to Yonhap News Agency citing a report on the 25th, China has finally approved rare earth product exports to most South Korean companies this month. This has temporarily alleviated concerns over the potential cutoff of South Korea's rare earth supply chain. However, this message has not been confirmed by China. Previously, China warned South Korea against re-exporting to the U.S. It is reported that when exporting rare earth to South Korea, China requires South Korea to sign contract terms including "prohibition of resale to U.S. defense enterprises." If any violation is found, China can immediately terminate the supply and pursue legal responsibility.
Data from the Korea International Trade Association shows that in 2022, South Korea's dependence on China for rare earth metal imports reached 79.8%, 61.1% for rare earth compounds, and 29.1% for rare earth chemical products. Samsung, SK, LG and other companies warned that if rare earth supply is cut off, the production of smartphones, electric vehicle batteries, and precision optical components will face a "fatal blow."
South Korean media disclosed relevant key details, stating that after China announced the implementation of rare earth control measures, South Korea immediately maintained communication with China through a hotline, urging China to expedite the approval process for rare earth export permits to minimize potential losses for South Korean companies. South Korea hopes to establish a "rare earth export control special communication mechanism" with China, holding at least two video conferences per week.
However, South Korea also admitted that given that China's approval of export licenses for South Korean companies is still ongoing and the great uncertainty in U.S.-China relations, South Korea believes that China's related measures may still change, and is closely monitoring relevant export control developments.
Original article: https://www.toutiao.com/article/1833058373957632/
Disclaimer: The article only represents the author's personal views.