It has also shown it doesn’t shy away from using these tools. In 2010 China briefly restricted rare earth exports to Japan; more recently it has imposed export restrictions on gallium, germanium and antimony (which are also deemed critical minerals) and banned the export of rare earth processing equipment.
While the person from the Chinese business sector quoted above argued that the export control system is a “tit-for-tat measure for the U.S.,” Beijing decided — in its latest move — to target all countries rather than just the U.S. That’s also leaving a mark on European industry.
“All export licenses now have to be re-approved and there has been a temporary de facto export ban, meaning we are experiencing a backlog in the approval of new export licenses, which is still affecting supply chains today,” said Stefan Steinicke, a raw materials expert at the Federation of German Industries, a business lobby group.
The controls not only give the Middle Kingdom more leverage in trade talks with the EU by sending a warning to Brussels not to team up with Washington — they also afford it valuable insight into rare earth supply chains. Earlier this month Beijing agreed to set up a “green channel” for European companies to speed up the approval of licenses.
Catch me if you can
In response, industry bodies are pushing for the EU to accelerate its own efforts to diversify supply away from China, alongside pursuing diplomatic efforts.
James Watson, director general at metals lobby Eurometaux, called on Brussels to “continue to invest in international cooperation,” to “support recycling efforts and the circular economy in the EU,” and to push “domestic production of certain metals in the EU.”
