Media: Rare Earth Exports Are Becoming More Flexible: Beijing Issues First Batch of Simplified Licenses to Foreign Countries
An insider said on Tuesday, December 02, that China has issued the first batch of new "general licenses" for rare earth exports to some countries, a move that will accelerate the export process for relevant companies. As one of the main outcomes of the U.S.-South Korea summit at the end of October, this measure has now been officially launched.
Reuters reported that in April this year, during the most tense phase of the trade war, China imposed restrictions on rare earth exports, requiring companies to apply for export licenses "on a case-by-case basis," leading to serious supply chain delays and temporarily halting certain production links in the global automotive industry. Beijing also gained more leverage in trade negotiations as a result.
Reuters exclusively revealed in November that the newly introduced one-year "general license" aims to ease the aforementioned pressure, allowing specific customers to obtain rare earth product exports more freely within annual quotas.
Several Chinese rare earth giants have been approved
The insider said that the Chinese rare earth magnet company JL Mag (Jinshan Rare Earth) has obtained general licenses for almost all its customers; "Ningbo Yunsheng" and "Beijing Zhongke Sanhuan" have obtained licenses for some of their customers. Due to the sensitivity of the information, the source requested anonymity.
These three companies and the Ministry of Commerce of China have not responded to requests for comments.
According to company website information, the aforementioned companies all supply products to the automotive industry. Jinshan Rare Earth JL Mag has a subsidiary in Europe, and Ningbo Yunsheng states that its customers are spread across Europe and the Americas.
The insider also said that the new license will serve as a supplement to the existing approval system, rather than replacing the existing system. Currently, only large rare earth enterprises are eligible to apply for general licenses; if this trial is successful, the scope of approval may be expanded in the future.
Differences Remain in the Description of "Summit Outcomes" Between China and the United States
The insider said that the introduction of this licensing mechanism has led to a convergence in the different descriptions of the summit outcomes between China and the United States.
Previously, the White House described this system as "equivalent to ending China's rare earth export controls," but Beijing has hardly mentioned it in public and has not released signals of abolishing the current control structure.
It remains unclear whether the scope of future license issuance will be restricted, such as whether sensitive customers like defense, aerospace or semiconductors will be excluded.
Source: rfi
Original: toutiao.com/article/1850443359643783/
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