China Grants Export Permits for Rare Earths After Talks with the US

• China has issued export permits for rare earth elements following negotiations with the US.
• China's restrictions on rare earths pose a threat to high-tech manufacturing.
• Experts doubt the sufficiency of the new permits for American manufacturers.

This was reported by Associated Press, ABC News.

China has approved a "certain number" of export permits for rare earth elements as a result of high-level negotiations between the US and China. This occurred after two days of trade talks in London, where US President Donald Trump announced that Beijing would provide the necessary elements and magnets for American companies.

These negotiations took place against a backdrop of increasing tension due to China's export restrictions on rare earths, which threatened the production of cars, robots, and other high-tech products in the US and worldwide. Following the introduction of permit requirements for seven heavy rare earth elements in April, these restrictions became a key issue in the talks.

The Importance of Rare Earth Elements

Rare earths are critical minerals used in many products. Despite their name, these elements are not rare, but they are difficult to extract in economically viable concentrations. China controls about 90% of the world's rare earth production.

Among the elements subject to restrictions are terbium and dysprosium, which are used to make magnets that withstand high temperatures. These magnets are critical for electric vehicles, wind turbines, and military technologies.

Manufacturing Issues Due to Restrictions

Market analysis shows that some companies are already experiencing shortages of rare earth elements. The European Association of Automotive Suppliers reported that the industry is already facing serious disruptions due to China's export restrictions. Many production lines and factories in Europe have shut down, and further problems are expected in the coming weeks.

Uncertainty in Trade

Despite the new export permits, questions remain. Chinese officials stated that they would consider the "reasonable needs and concerns of all countries" when processing applications for export permits. However, experts believe that China is unlikely to provide a sufficient number of permits to ensure supplies for American manufacturers.

NioCorp CEO Mark Smith expressed hope that the US would find solutions to reduce dependence on China for the supply of these critical elements.

Теги: Китай/Економіка