Latest news with #exportlicenses
Reuters
4 days ago
- Automotive
- Reuters
Exclusive: China issues rare earth licenses to suppliers of top 3 US automakers, sources say
BEIJING/WASHINGTON, June 6 (Reuters) - China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers, two sources familiar with the matter said, as supply chain disruptions begin to surface from Beijing's export curbs on those materials. At least some of the licenses are valid for six months, the two sources said, declining to be named because the information is not public. It was not immediately clear what quantity or items are covered by the approval or whether the move signals China is preparing to ease the rare-earths licensing process, which industry groups say is cumbersome and has created a supply bottleneck. China's decision in April to restrict exports of a wide range of rare earths and related magnets has tripped up the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. China's dominance of the critical mineral industry, key to the green energy transition, is increasingly viewed as a key point of leverage for Beijing in its trade war with U.S. President Donald Trump. China produces around 90% of the world's rare earths, and auto industry representatives have warned of increasing threats to production due to their dependency on it for those parts. Suppliers of three big U.S. automakers, General Motors, (GM.N), opens new tab, Ford (F.N), opens new tab and Jeep-maker Stellantis ( opens new tab got clearance for some rare earth export licenses on Monday, one of the two sources said. GM and Ford each declined to comment. Stellantis said it is working with suppliers "to ensure an efficient licensing process" and that so far the company has been able to "address immediate production concerns without major disruptions." China's Ministry of Commerce did not immediately respond to a faxed request for comment. China's critical-mineral export controls have become a focus on Trump's criticism of Beijing, which he says has violated the truce reached last month to roll back tariffs and trade restrictions. On Thursday, Trump and Chinese President Xi Jinping had a lengthy phone call to iron out trade differences. Trump said in social-media post that "there should no longer be any questions respecting the complexity of Rare Earth products." Both sides said teams will meet again soon. U.S. auto companies are already feeling the impact of the restrictions. Ford (F.N), opens new tab shut down production of its Explorer SUV at its Chicago plant for a week in May because of a rare-earth shortage, the company said. The approval for the auto suppliers follows a green light granted to a U.S. electronics firm's suppliers last week and another one issued earlier this week to suppliers of a U.S. non-auto company, the first person said, declining to name the companies. "We have to give the Chinese the benefit of the doubt that they're working through this. It's up to them to show that they are not weaponizing it," said the person. Reuters reported on Wednesday that China has introduced a tracking system for its rare earth magnet sector in a move to improve its control over the sector and crackdown on smuggling.
New York Times
5 days ago
- Business
- New York Times
China Allows Limited Exports of Rare Earths as Shortages Continue
China's Ministry of Commerce has started issuing more export licenses for shipments of rare earth magnets this week, but the pace remains slow and China appears committed to the licensing requirements introduced two months ago. Many factories in the automotive sector and other industries in Europe and the United States, and a few in Japan, are running low on the magnets. China makes 90 percent of the world's supply of these magnets, which are essential for cars, drones, factory robots, missiles and many other technologies. After a lengthy call on Thursday with Xi Jinping, China's top leader, President Trump wrote on social media that the two men had discussed rare earths. Mr. Trump mentioned that rare earths were a complex subject but did not indicate whether anything had been decided about China's strict export licensing requirement, which Beijing imposed on April 4. The presidents agreed that their senior aides would meet soon for further discussions. China's statement about the call did not mention rare earths. Lin Jian, a spokesman for China's foreign ministry, declined to answer a question about the minerals on Friday at the ministry's daily briefing, saying that it was a matter for other agencies. On Thursday, the Ministry of Commerce said only that it would issue export licenses according to its new rules. The American and European chambers of commerce in China each said on Friday that somewhat more export licenses had been issued in recent days. But both groups emphasized that more were needed, as the Ministry of Commerce faces a huge backlog of detailed applications for licenses. Jens Eskelund, the president of the European Union Chamber of Commerce in China, called for more exports from China. 'Our members are still struggling with the export license approval process, due to both the time it takes and the lack of transparency, and this is now negatively impacting production lines in Europe and other countries,' he said in a statement. Want all of The Times? Subscribe.
Reuters
12-05-2025
- Business
- Reuters
US customers should get Chinese rare earth permits more easily after trade truce, say sources
BEIJING, May 12 (Reuters) - Rare earth export permits for U.S. customers are likely to have an easier time getting approval from Beijing after Monday's trade war truce, however a complete removal of the restrictions is unlikely, according to two sources in the industry in China. China added seven rare earths and related items to a control list in April as part of its retaliation against U.S. tariffs. The decision means exporters need to apply for licenses before selling outside China. While the decision applied to all countries, the likelihood of U.S. customers receiving export licenses during the trade war looked unlikely. Elon Musk said last month Tesla was in talks with Beijing over licenses for its Optimus robots. The truce announced on Monday could see the Ministry of Commerce expedite approvals, which in theory take 45 days, and even grant licenses for U.S. customers soon, according to two sources in the industry who were granted anonymity given the sensitivity of rare earths in China. "We are expecting to see an acceleration in the issuance of the required export license and exporters with clients in the U.S. might get a license soon," said one of the sources. However, China is unlikely to remove the export controls because they form part of a broader package of measures designed to give Beijing greater control over various critical minerals where it dominates the mining or processing, they added. China, the world's largest supplier of dozens of strategic minerals, began imposing restrictions in 2023 on exports of several minerals vital to sectors ranging from chipmaking and energy transition to defence. The United States, which imports most of its rare earths from China, faces the threat of being cut off the critical minerals vital to defence and other high-tech sectors.
