"China is establishing a 'green channel' for international rare earth applications!"

According to the German Press Agency (DPA) on August 8, in the dispute over rare earth exports, China promised to expedite the processing of European companies' rare earth export applications. Meanwhile, China also relaxed its control over the rare earth resources of the three major American automobile manufacturers. The report from the China Chamber of Commerce to Europe (CCCEU) stated that there has been slight improvement in the issuance of export licenses. However, China has banned the use of rare earths for Western military industries.

Jens Eskelund focuses on China's rare earth exports

According to reports from the European side, Chinese representatives met with Maroš Šefčovič, the EU Commissioner for Trade and Economic Security, in Paris this week. They expressed that China attaches great importance to the concerns of the European side. China is prepared to establish a "green channel" for eligible applications to accelerate approval procedures. Export controls are "international practice" in principle. China hopes that the EU will take measures to promote high-tech product trade with China.

On Friday, the China Chamber of Commerce to Europe announced in Beijing that the number of export licenses issued to European companies has increased. China has clearly prioritized handling the most urgent cases to "avoid a major crisis."

However, Jens Eskelund, chairman of the China Chamber of Commerce to Europe, said that problems still exist in the export license approval process, which is time-consuming and lacks transparency. This has negatively impacted production lines in Europe and other countries. Manufacturers in the EU, the US, and Japan, especially those in the automotive industry, have recently faced pressure.

Report by DPA

American manufacturers also breathed a sigh of relief.

Reuters reported on Friday, citing insiders, that China has temporarily allowed the export of rare earths to major American automakers. At least some licenses are valid for six months. A source familiar with the matter said that suppliers to General Motors, Ford, and Stellantis have been approved.

General Motors and Ford declined to comment. Stellantis stated that it is working with suppliers "to ensure an efficient licensing process." So far, the company has successfully avoided significant production disruptions.

Observers estimate that rare earths may also become a key topic at the Sino-US trade negotiations held in London on Monday. These talks were announced by US President Trump and later confirmed by China. During the visit, China will hold its first talks under the framework of the Sino-US economic and trade mechanism.

China leads in rare earth mining and refining

However, European companies stated that although China has established a "green channel" for applications from Europe and the US, it has already implemented a tracking system in the rare earth magnet industry.

This means that many companies not meeting the application criteria find it difficult to obtain rare earths from China. Since early April, only one-quarter of the hundreds of rare earth export license applications submitted by automotive parts suppliers have been approved so far, and some applications have been rejected due to "procedural reasons."

The European Automobile Suppliers Association pointed out that "the processes in various provinces seem to differ, and in many cases, the government requests sensitive information related to intellectual property." The association added that if the processes are not simplified soon, more factories could be affected within the next three to four weeks as inventories are depleted.

Western defense industries depend on China's rare earths

Supplies of rare earths to Western defense industries have also been cut off.

According to the German WirtschaftsWoche (WIWO), the magazine saw a table named "End-use Certificate" from official Chinese sources. The table stipulates that buyers of rare earths must also provide a guarantee that they will only use rare earths for specified purposes and will not under any circumstances use them for "storage, processing, production, or handling of weapons of mass destruction and their delivery systems."

"This virtually excludes the entire arms industry, part of which also depends on rare earths," the magazine lamented. Although Rheinmetall and Hensoldt in Germany responded to inquiries by stating that their supply chains have not been affected, insiders expressed skepticism about these claims by arms companies.

China values national security in rare earth exports

According to Spiegel, in the short term, EU representatives have no choice but to reach a compromise with China. The European Commission has initiated negotiations with China. The automotive industry is also involved, but so far, the results have been minimal. Hildegard Müller, president of the German Association of the Automotive Industry, recently traveled to Beijing to seek solutions to the blockade. Müller stated that although some export licenses have been obtained, this is not enough to ensure "smooth production."

Abema believes that in today's complex international environment, especially given the various threats to China's national security, China's strict rare earth export policies formulated according to international practices are reasonable. Moreover, the US and Europe currently impose restrictions on the export of high-tech products such as chips to China and require leading technologies for local investments in China. Therefore, China must respond to protect its own interests.

Original Source: https://www.toutiao.com/article/7513561671302922752/

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