China may ease export restrictions on some chip enterprises and rare earth elements.
According to multiple informed sources cited by China Daily, the Ministry of Commerce held a "Sino-European Semiconductor Upstream and Downstream Enterprise Seminar" on the 27th to publicize the policy on rare earth export control, in order to strengthen communication between authorities and Sino-European semiconductor enterprises. One of the sources stated that this move implies that China may relax its rare earth export control policies targeting the industrial chains of Sino-European semiconductor companies.
According to reports from Reuters and Central News Agency, in April this year, China included seven types of rare earth elements and related products in the export control list, requiring all exporters to apply for licenses regardless of the nationality of their customers. Although some export licenses for rare earth magnets have been approved, which are widely used in semiconductors, automobiles, and defense industries, the complex approval process often takes months, causing chaos at customs.
The Ministry of Commerce convened the "Sino-European Semiconductor Upstream and Downstream Enterprise Seminar" in Beijing on May 27th. The aim was to publicize the rare earth export control policy and enhance communication with Chinese and European semiconductor enterprises. At the meeting, the Bureau of Industrial Security and Import & Export Control detailed the procedures for applying for export permits. This seminar was attended by representatives from over 40 Sino-European semiconductor enterprises, as well as the China Semiconductor Industry Association and the European Union Chamber of Commerce in China.
According to China Daily and multiple informed sources, China intends to relax its rare earth export control policies targeting the industrial chains of Sino-European semiconductor companies, responding to the urgent needs of the industry for accelerating approval processes and ensuring supply chain stability.
Jens Esklund, Chairman of the European Union Chamber of Commerce in China, told Reuters: "This meeting provided EU Chamber members with an opportunity to express their needs face-to-face, emphasizing the urgency of accelerating the approval process to ensure supply chain stability. This is crucial because many European production lines are at risk of shutdown due to shortages of key raw materials."
Analysts pointed out that although the US-China trade war has temporarily eased, rare earth export controls remain strategically significant as a countermeasure against US tariff hikes. By convening Sino-European semiconductor companies to publicize export control policies and potentially relax regulations for European enterprises, China may be signaling its intention to "unite with Europe to counter the US."
Rare earth elements are indispensable in semiconductor manufacturing, with several production stages relying on rare earth materials. The convening of this meeting and potential policy adjustments could help alleviate global semiconductor supply chain tensions and promote economic and trade cooperation in the semiconductor sector between China and Europe.
Source: https://www.toutiao.com/article/1833413240221705/
Disclaimer: The article solely represents the author's personal views.