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China Approves Partial Rare Earth Exports but Retains Control of Key Elements

Beijing has granted licenses to U.S. and European buyers under the June 27 framework, maintaining strict limits on heavy rare earths to preserve its diplomatic leverage.

Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China October 31, 2010. Picture taken October 31, 2010. REUTERS/Stringer/File Photo
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Overview

  • Since the June 27 trade framework, China’s authorities have approved a portion of pending U.S. and EU license applications for rare earth exports.
  • Despite resumed shipments, critical metals such as dysprosium and terbium remain tightly restricted under the export quota system.
  • New magnet-tracking requirements launched in June compel producers to report customer details and transaction volumes to regulators.
  • April export curbs slashed magnet shipments by 75 percent and forced automakers to pause production for two months.
  • Global consumers are accelerating domestic supply projects and stockpiling inventories to reduce dependence on Chinese rare earths.