China on Thursday announced a raft of new export controls on rare earth materials and related technologies as it looks to cement its dominance in the sector amid intensifying rivalry with the United States.
Restrictions covering the export of technologies related to rare earth mining, smelting and separation, magnetic material manufacturing, as well as the use and recycling of rare earth secondary resources will take effect immediately, according to a statement from the Ministry of Commerce.
Technologies related to the assembly, debugging, maintenance, repair and upgrading of relevant production lines will also be restricted.
The moves represent a “major upgrade” of Beijing’s rare earth export control regime, expanding its scope from raw materials to technology and intellectual property, which should strengthen China’s leverage ahead of crucial negotiations with the US, according to Wang Dan, China director at risk consultancy Eurasia Group.
“These restrictions will have little impact on China’s production, but will deepen foreign dependence on Chinese know-how,” she said.
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What are rare earths, and why is China’s dominance facing global pushback
What are rare earths, and why is China’s dominance facing global pushback
In addition, Beijing will require any foreign entities exporting rare earth materials that are made in China to apply for a dual-use item export permit from the Ministry of Commerce, effective immediately, according to a separate notice from the ministry.