The new regulations will cover metals such as holmium, erbium, thulium, europium and ytterbium, which play a key role in modern technologies thanks to their unique magnetic, optical and luminescent properties. The list of products subject to restrictions is wide and includes both pure metals and their alloys as well as materials for specialized applications. Exporters will need to obtain special licenses issued by China's Ministry of Commerce.
“The decision is dictated by the need to protect the interests of the state and national security and to fulfill international anti-proliferation obligations.” — said the authorities in Beijing.
In addition to restrictions on rare earth metals, the Chinese Ministry of Commerce also announced the introduction of export controls on technologies related to mining, smelting, production of magnetic materials and recycling. The export of dual-use items, which can be used for both civilian and military purposes, will require special approval. The authorities have indicated that exports intended for foreign military users will not be approved.
Chinese companies have also been required to obtain special permits before providing support to foreign entities engaged in rare earth mining or other related activities.
In a separate announcement, the implementation of restrictions on the export of technology and materials for the production of lithium batteries was announced. The restrictions will cover three main categories: high-energy lithium-ion batteries, advanced materials for the production of graphite cathodes and anodes, as well as specialized production equipment such as electrolyte filling machines and graphitization furnaces. As with rare earth metals, the export of these products will require a special license.
China: it is state interest
The government in Beijing emphasized that the decision to tighten the regulations results from the need to protect state interests and national security. Restrictions on battery technology will also come into force on November 8.
Reuters notes that new regulations may strengthen China's negotiating position in trade relations with the United States. The introduction of restrictions comes a few weeks before President Donald Trump's planned meeting with Chinese leader Xi Jinping.
