China steps up control of rare-earth exports citing national security' concerns

"China has increased restrictions on exports of rare earths and related technologies as Beijing tightened its grip on the products that are critical for use in smartphones and fighter jets. China's commerce ministry announced the restrictions on Thursday, arguing damage had been caused to its national security from exports of the technologies both directly or indirectly to foreign military. The restrictions require government permission for the export of technology used to mine, process or recycle rare-earth minerals or make magnets from it,"

"The restrictions also ban Chinese nationals and Chinese companies from assisting in the same processes overseas. Foreign manufacturers using Chinese machinery or components overseas are now expected to seek permission, although it was unclear how that would be enforced. Companies hoping to export items that have even small traces of Chinese-sourced rare-earths elements must get ministry approval. Those with previously issued export licences for potential dual-use items were encouraged to proactively present the licences for inspection."

Beijing strengthened export controls requiring government permission to export technology for mining, processing and recycling rare-earth minerals and for making magnets, with approvals potentially denied. The rules cite national security harm from direct or indirect exports to foreign militaries and bar Chinese nationals and companies from assisting those processes overseas. Foreign manufacturers using Chinese machinery or components abroad are expected to seek approval, and companies exporting items containing even small traces of Chinese-sourced rare-earth elements must obtain ministry permission. Previously issued licences for potential dual-use items were urged for inspection, with overseas defence users to be refused and advanced semiconductor cases decided individually. China controls about 70% of global rare-earth mining and dominates separation, processing and magnet manufacturing.

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