China yesterday tightened its rare earth export controls, expanding restrictions on processing technology, and spelling out its intention to limit exports to overseas defense and semiconductor users.
The announcement from the Chinese Ministry of Commerce clarifies and expands sweeping controls announced in April that caused shortages around the world before a series of deals with Europe and the US eased, but did not eliminate, the supply crunch.
The controls are a major bargaining chip for China in its trade talks with the US, and the tightening comes weeks ahead of a possible face-to-face meeting between US President Donald Trump and Chinese President Xi Jinping (習近平) in South Korea.
Photo: AP
“From a geostrategic perspective, this helps with increasing leverage for Beijing ahead of the anticipated Trump-Xi summit in [South] Korea later this month,” said Tim Zhang, founder of Singapore-based Edge Research.
China produces more than 90 percent of the world’s processed rare earths and rare earth magnets. The 17 rare earth elements are vital materials in products ranging from electric vehicles to aircraft engines and military radars.
Restrictions on exporting the technology to make rare earth magnets would also be expanded to more types of magnets, and China is to limit some components and assemblies that contain restricted magnets.
China is the world leader in rare earth technology and equipment to recycle rare earths would now require a license to export, adding it to the long list of restricted processing technology.
The ministry’s announcement clarified for the first time some of the targets of China’s restrictions.
Overseas defense users would not be granted licenses, the ministry said, while applications related to advanced semiconductors would only be approved on a case-by-case basis.
A day earlier, US lawmakers called for broader bans on exports of chipmaking equipment to China.
China’s rare earth shipments have been growing steadily over the past few months as Beijing granted more export licenses, although some users still complain they are struggling to get them.
In a nod to concerns about access, the ministry said the scope of the items in its latest round of restrictions was limited and “a variety of licensing facilitation measures will be adopted.”
The new rules bar Chinese companies working with companies overseas on rare earths without permission from the ministry.
Manufacturers overseas using any Chinese components or machinery must also apply for licenses to export controlled items, the ministry said.
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Taiwanese prosecutors suspect that three people successfully smuggled at least one shipment of Nvidia Corp artificial intelligence (AI) chips to China after first exporting them to Japan, people familiar with the matter said. The trio was detained last week by the Keelung District Prosecutors’ Office for allegedly falsifying documents related to exports of Super Micro Computer Inc servers containing advanced Nvidia chips, which the US has barred from sale to China without a license from Washington. The move marked Taiwan’s first public crackdown on AI chip diversion after years of pressure from the US to take a more active role in curtailing
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) employee bonuses are likely to grow more than 30 percent this year, in line with the past few years as the company’s profits continue to set new records, an anonymous source cited TSMC chairman C.C. Wei (魏哲家) as saying yesterday. TSMC, the world’s largest contract chipmaker, is committed to taking care of its workers, the source said, citing Wei’s meeting with employees yesterday morning. Wei also expressed gratitude to employees for their contribution to the company’s improving bottom line, the source added. Since 2023, TSMC’s employee bonuses have grown at an annual rate of
RSS