China issues first batch of streamlined rare earth export licences: source
Beijing’s new licensing regime signals it is following through on commitments made at the Trump-Xi summit
[BEIJING] China has issued the first batch of new rare earth export licences that should accelerate shipments to certain customers, a source said on Tuesday (Dec 2), fulfilling a key outcome of the summit between US President Donald Trump and Chinese President Xi Jinping.
China began designing a new streamlined rare earth licensing regime centreed on so-called “general licences” following the late October meeting between Trump and Xi that eased trade tensions between the two countries, Reuters exclusively reported in early November.
Chinese magnet maker JL Mag rare earth has received licences for nearly all of its clients, while Ningbo Yunsheng and Beijing Zhong Ke San Huan High-Tech have secured licences for some of their clients, the source said, declining to be identified due to the sensitivity of the matter.
The three firms and China’s Ministry of Commerce did not immediately respond to questions.
All three companies sell to the automotive industry, according to their websites. JL Mag has a subsidiary in Europe and Yunsheng says it has clients in Europe and the Americas.
The introduction of the licensing regime is the latest evidence that Beijing is following through on the commitments that Washington says were agreed at the leaders’ summit.
The White House has previously likened general licences to the effective end of China’s rare earth export controls.
While China has said little publicly about the new licences, Reuters reported last month that they would supplement the existing licensing regime, not replace it, be valid for a year and allow much larger volumes of exports.
Under the regime first introduced in April, companies must get a licence from Beijing for each shipment, a process that has caused major bottlenecks for customers around the world.
SEE ALSO
Currently only large rare earth companies are eligible to apply for general licences, however, eligibility will widen if the regime is a success, the source said. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
