China moves to shield rare earths from US military use: WSJ

Despite agreeing to relax its export controls on rare earths, China is now preparing a new licensing regime that would continue to restrict shipments to US military-linked firms, The Wall Street Journal reported on Wednesday.According to sources cited by WSJ, the Chinese government plans to launch a “validated end-user” (VEU) framework that would vet companies with no ties to US defense contractors to receive faster export approvals for rare earths and other sensitive materials, while keeping tighter scrutiny over dual-use exports.The new system is designed to let Chinese leader Xi Jinping honor his pledge to US President Donald Trump to ease the flow of strategic materials like rare earths, without compromising Beijing’s national security priorities, the report said.In April, China placed tightened export controls on rare earths and related products, using its global dominance in mining and processing as leverage in trade negotiations with the United States. Magnets made of rare earths are not only widely used in civilian goods such as electric vehicles and electronics, but are also needed in military applications including jet fighters, submarines and attack drones.If strictly implemented, the new VEU system could make it harder for US and European manufacturers in the automotive and aerospace sectors—many of which supply both civilian and defense markets—to source key materials from China.China’s critical minerals curb has billion-dollar impact on US GDP: MacquarieAccording to WSJ, Beijing’s proposed framework is modelled after the VEU framework currently used by the US. In place since 2007, the US law would allow some Chinese companies to import sensitive goods under a simplified approval mechanism without seeking separate licenses for each shipment.The Chinese version would similarly offer a general authorization for approved users, in exchange for compliance requirements such as facility checks.However, Beijing hasn’t disclosed which firms might qualify or how long such designations would last, WSJ sources said, while adding that details of the framework are still being finalized and could change before implementation.The planned move comes after months of trade tensions and shifting signals on China’s export policy. While both sides pledged to ease curbs after an Oct. 30 truce between Trump and Xi, China’s export of rare-earth magnets to the US fell 29% in September from the previous month, signaling continued disruptions.China’s Ministry of Commerce did not respond to a WSJ request for comment.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com