China has postponed the export control of rare earth elements.

New Delay for Rare Earth Elements from China

The Chinese Ministry of Commerce announced on October 9, 2023 that it has postponed the implementation of export control measures related to rare earth elements until November 10, 2026.

Rare Earth Elements and the Export Process

The restrictions announced by the ministry target the export of certain raw materials and production technologies deemed sensitive for national security. The focus is particularly on the export of rare earth elements and related technologies used in advanced technology devices such as electric vehicles, smartphones, space vehicles, and weapon systems.

Scope of Restrictions

Export controls will be applied to processes related to the extraction, processing, and recycling of rare earth elements. Additionally, the establishment of assembly lines and maintenance and upgrade operations in facilities utilizing these elements will also be monitored. Furthermore, foreign companies will be required to obtain a license from the Chinese Ministry of Commerce when procuring rare earth elements from China.

Dynamics of International Trade

The US and China continue to engage in trade tensions, with both parties applying mutual restrictions. China aims to increase its economic strength by controlling 69% of global rare earth element production. Additionally, new export restrictions have been imposed on products such as lithium-ion battery production and super-hard metals.