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China tightens rare earth export controls, targets defence, semiconductor users

China tightened export controls for rare earths on Thursday. It expanded restrictions on processing technologies, barred unauthorised cooperation with overseas users, and stated its intention to restrict exports to overseas semiconductor and defence users.

The announcement by the Ministry of Commerce clarifies, and expands on, sweeping controls announced last April. These controls caused massive shortages in the United States and Europe before a series of agreements with Europe and America resumed shipments.

China produces 90% of the processed permanent magnets and 60% of the global mine output. Rare earths are essential materials used in everything from electric vehicles and aircraft engines to military radars.

Export restrictions on technology for rare earth magnets are being expanded to include more types of magnets. Export licences are now required for equipment used to recycle rare Earths, which is another technology China has restricted.

The ministry has stated that manufacturers who use Chinese components or machines must also apply for export licences.

In the announcement, China clarified some of its restrictions for the first. The ministry stated that overseas defence users would not be granted licenses. Applications related to advanced semiconductors are only approved on an individual basis.

Chinese companies are not allowed to work with foreign companies on rare earths unless they have permission from the Ministry. Reporting by Lewis Jackson, Beijing; Editing and proofreading by Christian Schmollinger & Kate Mayberry

(source: Reuters)