China signals softer stance on rare earth export curbs
China, which controls 90% of global processing capacity for rare earth magnets, has imposed restrictions requiring exporters to obtain licences from Beijing. (EPA Images pic)
BEIJING : China said it would cooperate further with other countries over its rare earth export controls as shortages put auto and semiconductor makers in Europe and India at risk of closure.
China, which controls over 90% of global processing capacity for the rare earth magnets used in everything from automobiles and fighter jets to home appliances, imposed restrictions in early April requiring exporters to obtain licences from Beijing.
While a handful of licences have been granted, including to some Volkswagen suppliers, Indian automakers say they have received none and will have to stop production in early June.
'We stand ready to strengthen dialogue and cooperation in the field of export control with relevant countries and regions and stay committed to maintaining the stability of global production and supply chains,' foreign ministry spokesman Lin Jian said today when asked about the controls.
Chinese state media reported on Wednesday that the country could relax its curbs on rare earths exports for Chinese and European semiconductor firms after meetings between industry and the commerce ministry where the issue of shortages was raised.
The New York Times reported earlier this week that the US suspended some sales of critical technologies to China, including parts for state-owned plane maker COMAC, in response to China's restriction on exports of critical minerals.
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