• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Inside China’s export control maze: how Beijing regulates strategic minerals

by April 24, 2025
by April 24, 2025

Amidst global shifts in technology and trade, China has increasingly utilized its significant control over the mining and refining of critical minerals as a point of leverage.

By strategically adding metals vital for clean energy technologies, advanced semiconductor manufacturing, and defence applications to its export control list, Beijing has demonstrated its ability to influence global supply chains, disrupt markets, and cause price fluctuations.

This control is primarily exercised through a detailed export licensing system, which dictates precisely who can receive specific materials and in what quantities.

The export control list: a tool of national interest

At the heart of the system lies China’s export control list. Since 2023, Beijing has placed restrictions on the export of at least 16 different minerals and related products.

This list saw notable additions earlier this month, including seven rare earth elements, a move widely interpreted as retaliation against significant US tariffs.

China’s export control law provides the legal framework, justifying the inclusion of items on the list as necessary measures to safeguard national interests, protect national security, and fulfill non-proliferation commitments.

It’s worth noting that export control regimes are not unique to China; the United States and other nations operate similar programs to manage the outflow of sensitive goods and technologies.

Obtaining an export license from China for these controlled minerals is a complex and document-intensive process. Prospective exporters must submit six distinct sets of documents.

A particularly challenging requirement involves providing detailed profiles of the intended end-users of the materials.

This stipulation has reportedly caused friction, leading some international importers to seek alternative suppliers because they deem such end-user information commercially sensitive and confidential.

Once an application is submitted, the approval process can be intricate, potentially involving a minimum of five different officials across as many as three separate government agencies.

In certain cases, approval may even require consultation with the State Council, China’s cabinet, or military authorities.

The administrative burden extends partially to the buyers as well.

Importers and end-users are required to sign declarations affirming, among other things, that they will not transfer the imported materials to any third party without obtaining prior permission from Chinese authorities.

Illustrating this control, reports surfaced earlier this month alleging that Chinese authorities warned South Korean firms against selling equipment containing Chinese rare earths to US defence contractors.

For the report, Reuters reached out to China’s Ministry of Commerce, requesting for comments on the system but there was no response.

The waiting game: official timelines vs on-the-ground reality

Officially, China’s Ministry of Commerce states that the processing time for an export license application is forty-five working days.

However, the ministry retains the right to extend this period if consultations with the State Council or military become necessary, though the specific triggers for such consultations are not publicly defined.

Despite the official timeline, industry sources consistently report a significantly longer wait in practice. Feedback gathered by Reuters suggests that securing a license typically takes two to three months, and often longer.

The current geopolitical climate further complicates matters.

One rare earth trader commented that obtaining licenses for clients based in the United States would be “especially hard” amidst the ongoing trade tensions, highlighting how geopolitical friction directly impacts the functioning and timelines of this critical export control system.

The post Inside China’s export control maze: how Beijing regulates strategic minerals appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Lloyds share price outlook ahead of earnings: buy, sell, hold?
next post
From Etsy to eBay: secondhand retail stocks poised to gain as tariffs push consumers toward thrifting

Related Posts

Asian markets open: most futures lower; Sensex to...

June 6, 2025

Here’s why the Nifty 50 Index may surge...

June 6, 2025

Circle stock price prediction: is CRCL a good...

June 6, 2025

Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and...

June 6, 2025

European markets open: Stoxx 600 flat ahead of...

June 6, 2025

Musk, Trump dial back feud as White House...

June 6, 2025

XRP slips 2.5% to $2.14 as Trump-Musk clash...

June 6, 2025

China’s May export growth seen slowing to 5.0%...

June 6, 2025

FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo,...

June 6, 2025

Citi downgrades CEG stock despite Constellation Energy’s big...

June 5, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Relative Drug Pricing is Bad Medicine

    June 6, 2025
  • Want to Fix Medicaid? Look to Milton Friedman

    June 6, 2025
  • Want to Fix Medicaid? Look to Milton Friedman

    June 6, 2025
  • Relative Drug Pricing is Bad Medicine

    June 6, 2025
  • Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    June 6, 2025
  • Here’s why the Nifty 50 Index may surge after the RBI rate cut

    June 6, 2025

Editors’ Picks

  • 1

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,373)
  • Editor's Pick (143)
  • Investing (165)
  • Stock (882)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Novo Nordisk CEO to step down as...

May 17, 2025

China’s export curbs on critical minerals raise...

June 4, 2025

Indian markets open: Sensex, Nifty retreat after...

April 16, 2025