China's Rare Earth Export Controls and Global Impact

China is cooperating with other countries to manage its rare earth export controls, which impact auto and semiconductor producers in Europe and India. Responsible for over 90% of global rare earth processing, China imposed restrictions in April, affecting global production and supply chains.


Devdiscourse News Desk | Updated: 30-05-2025 14:57 IST | Created: 30-05-2025 14:57 IST
China's Rare Earth Export Controls and Global Impact
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China has announced its intention to collaborate further with international partners on its rare earth export controls, a crucial move as shortages threaten the operations of automotive and semiconductor industries across Europe and India. This comes after China, which dominates more than 90% of the global processing capacity for rare earth magnets essential in various sectors, implemented stringent export restrictions.

As of now, only a limited number of export licenses have been issued, leaving Indian automakers facing potential production halts by early June. Volkswagen's suppliers in Europe, however, have secured some licenses. Lin Jian, a spokesperson for the Chinese foreign ministry, emphasized China's readiness to engage in dialogue to maintain global supply chain stability.

In a potential easing of restrictions, Chinese state media hinted at possible relaxations for Chinese and European semiconductor firms following industry discussions. This development follows the U.S. decision to halt certain technology sales to China, representing a counter-response to China's critical mineral export limitations.

(With inputs from agencies.)

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