BEIJING (Reuters) – China has unveiled a list of rare earth regulations aimed at protecting its reserves in the name of national security, with rules on mining, smelting and trading of the critical materials used to to make products, from magnets in electric vehicles to consumer products. electronics.
The regulations, issued by the State Council or Cabinet on Saturday, say that rare earths are owned by the state, and that the government will oversee the development of the industry around rare earths – a group of 17 minerals that China has recently has grown over the years. the world’s dominant producer, accounting for almost 90% of global refined production.
Their global industrial significance is such that, under a law that came into force in May, the EU has set ambitious 2030 targets for domestic production of minerals crucial to the green transition – in particular rare earth elements due to their use in permanent magnets that power motors in electric cars and wind energy. energy.
Demand in the EU is expected to grow sixfold in the decade to 2030 and sevenfold by 2050.
China’s new regulations, which come into effect on October 1, say the State Council will establish a rare earth traceability information system.
Enterprises in mining, rare earth smelting and separation, and export of rare earth products will establish a product flow registration system, “truthfully” record the flow and enter it into the traceability system, the State Council said.
China last year imposed restrictions on the export of the elements germanium and gallium, which are widely used in the chip sector, citing the need to protect national security and interests.
It also banned the export of technology to make rare earth magnets, in addition to imposing a ban on technology to extract and separate rare earth metals.
These rules fueled fears that restrictions on the supply of rare earths could increase tensions with the West, especially the United States, which accuses China of using economic coercion to influence other countries. Beijing denies the claim.
China’s rare earth regulations also come as the EU prepares to impose provisional tariffs on Chinese EVs on July 4 to protect the 27-state bloc from a flood of EVs produced with unfair state subsidies, though both parties have said they plan discussions on the proposed tariffs.
