The Chinese government has recently introduced new regulations to protect rare earth supplies for national security reasons. These regulations cover the mining, smelting, and trading of rare earths, which are crucial components used in a range of products, including electric cars and military equipment. China, being the world’s largest producer of rare earths, accounting for nearly 90% of global supply, believes that these resources are state-owned and will oversee their development.
In May, the European Union set a goal to localize production of rare earths by 2030 in a bid to reduce its dependence on China. With the rapidly increasing demand for these materials, the EU hopes to achieve greater independence in this area. In response to this challenge, China has introduced new regulations that include establishing a rare earth information tracking system and requiring enterprises involved in the industry to record their steps honestly and input data into the national system.
However, concerns have been raised about the impact of limiting rare earth supplies on tensions with Western countries, particularly the United States. Earlier this month, the EU announced plans to increase taxes on Chinese electric vehicles, but negotiations are ongoing. This move comes amid economic tensions between China and the West. Despite these challenges, both sides still have opportunities to find common ground and negotiate mutually beneficial agreements.
China has also restricted exports of germanium and gallium, essential elements used in chip production. Additionally, it banned exports of technology for making rare earth magnets and extracting and separating rare earths. These measures are intended to protect national security interests.
In conclusion, while China’s actions may be driven by national security concerns