China to allow export of rare-earth metals for civilian use

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China on Friday said it will allow export of rare-earth metals from the country for civilian use. This comes  amid India's persistent calls for China to lift curbs of the export of precious metals that are required to manufacture a host of modern products.

PTI quoted Chinese Foreign Ministry spokesperson Guo Jiakun as saying that China's export control on rare earth-related items in accordance with laws and regulations does not target any specific country. Jiakun was responding to a question on India’s calls for resumption of rare-earth over which Beijing holds a near monopoly.

Highlighting China’s stand not to export the metals to manufacture defence products, Jiakun said, "As long as the export is for civilian use and complies with regulations, the Chinese government will approve the application in a timely manner."

“China stands ready to step up dialogue and cooperation with relevant countries and regions to jointly keep the global industrial and supply chains stable,” he said.

However, he emphasised that the permits would be for civilian use, considering that they could also be used to manufacture defence equipment.

"We’d like to stress that given the dual-use nature of medium and heavy rare earth and related items, exercising export control on the items is in line with international practice and reflects China’s consistent position of firmly upholding world peace and regional stability and actively participating in international non-proliferation effort," Guo said.

China on Thursday confirmed the resumption of exports of rare-earth metals, lifting the curbs imposed earlier this year.   He Yadong, spokesperson of the Commerce Ministry, told the media that his ministry has received and approved applications from some Chinese exporters for general export licenses for rare earth-related items, confirming that China has resumed exports of rare-earth metals.

China, which accounts for about 70 per cent of global rare earth mining and nearly 90 per cent of their processing, is the world's dominant supplier of the minerals critical for manufacturing electronics, automobiles, wind energy, and defence equipment.

The US, the EU and India are the top importers of China's rare earth metals.

Amid the tariff war with the US, China has announced export control measures on rare earths, putting a squeeze on the precious metals.

Reports from India spoke of growing concerns about shortages of the rare metals, especially in automobiles and other industries, prompting New Delhi to raise the issues in bilateral forums.

Beijing began easing the export controls after reaching an agreement with the US to permit the export of the semiconductor chips needed for China’s burgeoning AI industry.

India has been pressuring China to resume rare earth exports, highlighting the issue in different bilateral dialogue platforms, including the recent consultations of foreign ministry officials here on December 12.

In the Beijing talks, the Ministry of External Affairs (MEA) said, "the Indian side emphasised on the need for early resolution of outstanding issues pertaining to export control. Regional and global developments of mutual interest were also briefly touched upon." Besides rare earths, India has also been calling on China to permit the exports of its heavy boring machines to be used for mining.

(With Agency Inputs)