China approves some rare earth export applications

China has approved a number of export license applications for rare earth-related items amid surging overseas demand for medium and heavy rare earth elements used in the high-tech manufacturing sector, the Ministry of Commerce said in a recent statement.

Trade analysts said this approach seeks to balance China's resource security interests with its role as a key supplier in the global high-tech value chain, particularly in sectors such as industrial robotics and electric vehicles.

As medium and heavy rare earth elements become increasingly critical to next-generation manufacturing, managing their export through licensing mechanisms allows China to support global innovation while safeguarding domestic supply for key industries, said Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing.

"This is a calibrated move to preserve China's long-term economic and technological competitiveness," Mei said.

A spokesperson for the Commerce Ministry said that imposing export controls on rare earth-related items is in line with international practice, as such dual-use items could have both civilian and military applications.

China will continue to strengthen the review of compliant applications and is ready to enhance communication and dialogue on export controls with relevant countries to facilitate compliant trade, the spokesperson said in an online statement released on Saturday.

In early April, China implemented export control measures on certain items related to seven types of medium and heavy rare earth elements to better protect national security and fulfill related international obligations.

Although China's rare earth exports dropped 15.6 percent month-on-month to 4,785 metric tons in April, the country's total exports in this category reached 18,962 tons for the first four months of the year, up 5.1 percent year-on-year, statistics from the General Administration of Customs show.

These figures suggest a steady upward trend in the overall export market, and China's management of rare earth resources relies on an export licensing system, rather than a full-scale ban, said Ding Rijia, a professor specializing in industrial supply chain operations at China University of Mining and Technology in Beijing.

Ding said this approach aims to ensure sustainable resource utilization and environmental protection, while maintaining stable global supply chains for key industries such as clean energy, advanced manufacturing and electronics.

During his talks last week with European Commissioner for Trade and Economic Security Maros Sefcovic in Paris, France, Commerce Minister Wang Wentao explained China's export control policies to the European Union side, emphasizing that the implementation of export controls on rare earth elements and other items aligns with widely accepted international practices.

China is willing to establish a green channel for eligible applications and expedite the approval process, the ministry said in a separate statement on Saturday. It added that relevant working teams have been instructed to facilitate timely and continuous communication on the matter.

Jens Eskelund, president of the European Union Chamber of Commerce in China, said that European businesses have recently seen more rare earth export approvals.

"We are in regular contact with the Chinese authorities on this issue, and are now developing recommendations that we believe could eliminate the volatility that many companies are experiencing. This will be in the mutual interest of both the EU and China," he said.