WSJ : China Imposes New Controls Over Rare-Earth Exports

China Imposes New Controls Over Rare-Earth Exports
Some measures take effect immediately, while others will come into force on Dec. 1.

China introduced new controls on rare-earth exports on Thursday, requiring foreign entities to obtain government approval before re-exporting products of Chinese origin to other countries.

Foreign organizations and individuals must now obtain a dual-use export license from China’s Ministry of Commerce before exporting rare-earth products, technologies, or other dual-use items to destinations outside China, according to new rules issued by the ministry.

The export controls cover technologies used in rare-earth mining, smelting, and other processing steps, the ministry said. Some measures take effect immediately, while others will come into force on Dec. 1.

The move follows Beijing’s earlier requirement that Chinese exporters obtain licenses before shipping rare-earth products and technologies overseas.

The ministry said some foreign organizations and individuals had transferred or supplied rare-earth materials of Chinese origin to entities involved in military and other sensitive fields, posing “serious harm” and potential threats to China’s national security and global nonproliferation efforts.

Entities on China’s export control list—and their subsidiaries with 50% or greater ownership—will generally not be approved for exporting dual-use items and technologies, the ministry said.

Applications intended for the development of weapons of mass destruction, territorial expansion, or the enhancement of military capabilities will, in principle, be denied, it added.

Exports for humanitarian purposes, such as emergency medical care, responses to public-health emergencies, or natural-disaster relief, are exempt from the dual-use export license requirement.

However, exporters must report such shipments to China’s Ministry of Commerce via email within 10 working days, the ministry said.