China has adopted a number of rare earth regulations aimed at protecting resources in the interest of national security. In particular, the authorities have adopted mining, smelting and trade regulations for critical elements used in the production of various items - from magnets for electric vehicles to consumer electronics.
The State Council (government) regulations say that “rare earth resources belong to the state, and the government will control the development of the rare earth metals industry,” a group of 17 minerals in which China has become a leader in mining in recent years, accounting for almost 90% of global production.
Rare earth metals are critical in the EU for the green transition, as they are used in permanent magnets that power motors in EVs and wind turbines. According to forecasts, demand for these elements in the European Union will increase six times by 2030 and seven times by 2050.
The new rules come into force on October 1. By this time, the State Council will create an information system for tracking rare earth resources. Enterprises engaged in the mining, smelting and separation of rare earth elements, as well as their export, must create a system for recording the movement of products, “truthfully” record the flow and enter it into the traceability system, the State Council resolution says.
Last year, China already imposed export restrictions on germanium and gallium, the elements widely used in the computer chip-making sector. It also banned the export of technologies for the production of rare earth magnets and imposed a ban on technologies for the extraction and separation of rare earth elements.
China adopted new rules on rare earth elements as the EU prepares to introduce tariffs on Chinese electric cars on July 4.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
