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HomeNewsBusinessChina refuses to ease rare earth export control, says adopting policy 'in line with international practices'

China refuses to ease rare earth export control, says adopting policy 'in line with international practices'

In India also, automakers are worrying over the future outlook in case the situation continues.

June 05, 2025 / 15:43 IST

Amid growing concerns over China’s tightening grip on rare earth elements, Chinese commerce ministry in Thursday said that the policy was ‘in line with international practice.’

In a regular press briefing in Beijing, Ministry of Commerce spokesperson He Yongqian said that the new rules introduced by the Xi Jinping administration is “move to strengthen export controls on rare-earth materials is in line with international practices.” She was answering the query over global companies' claims that the “approval process of the exports permits is relatively slow and their business may face potential halt of output.”

She further said that “the Chinese government reviews applications for export licenses for dual-use items in accordance with laws and regulations. China will approve applications that meet the requirements to promote convenient and compliant trade.”

This response comes as the European Union has sought Beijing to ease the grip over rare earth exports. In India also, automakers are worrying over the future outlook in case the situation continues.

As per the International Energy Agency and the US Geological Survey (2025), China continues to dominate the sector, producing 60% of global REEs and controlling an overwhelming 90% of the world’s refining capacity. Effective April 4, new restrictions require special export licences for seven rare earth elements (REEs) and associated magnets, citing concerns over national security and non-proliferation.

Moneycontrol News
first published: Jun 5, 2025 03:35 pm

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