China’s rare earth exports to outpace new rules

The regulations, issued Saturday by China’s State Council, or cabinet, set out rules for mining, smelting and trading in the materials. Photo: Shutterstock

2 minutes of reading Last updated: Jul 03, 2024 | 10:56 AM IST

Exports of rare earth elements from China, their largest producer, are likely to increase in the face of new rules due to come into effect on October 1, state research institute Antaike said on Tuesday.

The regulations, issued Saturday by China’s State Council, or cabinet, set out rules for mining, smelting and trading materials used to make products ranging from magnets in electric vehicles to consumer electronics.

The government also said China will establish an information system to track the circulation of rare earth products, a move Antaike said is aimed at preventing smuggling and illegal trade.

Antaike said in a post on its WeChat account that the regulations, coupled with China’s recent efforts to regulate trade in rare earth elements and other critical minerals, could pose a risk to the market.

“In the short term, exports are likely to increase due to a possible wave of stockpiling ahead of the entry into force of the regulations,” it added.

In December, China announced it would ban the export of technology to produce rare-earth magnets, adding to an existing ban on the export of technology to extract and separate key materials.

China also said it would require rare earth exporters to provide information on supplies and quantities under new rules that come into effect on October 31.

Beijing also imposed restrictions on the export of products containing germanium and gallium, as well as some graphite products, citing considerations of national security and national interests.

Exports of products containing germanium and gallium, widely used in the chipmaking sector, rose sharply in July, a month before controls were introduced on the sector.

(Only the headline and image of the report may have been edited by the Business Standard team; the rest of the content is automatically generated from a syndicated feed.)

First published: Jul 03, 2024 | 10:55 AM IST