Posted on 10 Jun 2025
China’s commerce ministry said Saturday it has reviewed rare earths export licences applications and granted a “certain number” of permits, Kallanish reports.
In a statement, a ministry spokesperson says the government will continue to reinforce approval of compliant applications for rare earths export permits. “China is willing to further strengthen export control communication and dialogue with relevant countries in this regard to promote convenient and compliant trade,” the spokesperson adds.
Once again, the ministry explains that rare earth-related items have dual-use attributes, and that the implementation of export controls on them conforms with international practices. The raw materials can be used for military purposes as well as electronics, including electric vehicle motors.
According to Reuters, China has granted temporary export permits to GM, Ford, and Stellantis’s rare earths suppliers. Citing unnamed sources “familiar with the matter,” the news agency says some are valid for six months. It is unclear what quantities or types of rare earths products would be covered, or whether the move indicates that Beijing is preparing to streamline the approval process.
Companies and governments around the world have been urging Beijing to expedite the licensing approval as inventories run low. BMI analysts warn that a supply shortage risks bringing global auto production lines to a standstill, with EVs likely to be the most impacted. They also suggest the permitting delays could potentially see some carmakers shift part of their production to China to bypass the licensing bottleneck.
Beijing says it’s considering the growing demand for rare earths for civilian purposes, including the development of robotics and electric vehicles.
The comments follow a telephone conversation between China’s President Xi Jinping and his US counterpart Donald Trump last Thursday. According to a statement by China’s commerce ministry, the parties agreed to continue to implement the Geneva consensus, which means slashing tariffs to a 10% baseline and removing countermeasures such as export restrictions.
China Vice Premier He Lifeng will hold the first meeting of the China-US economic and trade consultation mechanism in London, during his UK visit on 8-13 June. Negotiators are widely expected to meet on Monday at an undisclosed venue.
Beijing restricted the exports of seven medium and heavy rare earth elements and derivatives in April, in the midst of a trade war escalation with the US. However, the government started a consultation on the following a consultation started in February.
Source:Kallanish
