Despite the announcement that it would remove non-tariff measures targeting the US, China appears to be enforcing rare earth export controls.
China has announced increased control of strategic mineral resources. This move comes days after trade talks with the US, which has put the exports of key materials in the spotlight.
In an online statement on May 14, China’s Commerce Ministry said Beijing will strengthen its management of the entire strategic mineral supply chain, including mining, processing, transportation and exports.
Comments came two days after a high-level planning meeting in Changsha, a central China city, discussing supply chain management on resources deemed relevant to national interests.
The meeting brought together staff from 10 government agencies, including the Customs and the Ministry of Commerce, Industry and Public Safety, along with local regulators from seven states rich in strategic mineral deposits, such as Jiangxi and Inner Mongolia.
According to official readings, these agencies had to “track strategic mineral flow closely” and “prevent strictly illegal spills.”
Related Stories
In recent years, China has strengthened its grip against a variety of processed important minerals. This is often seen as a decision that is seen as a retaliatory response to Western restrictions on access to advanced technologies with military or double-use applications.
However, it remains unclear whether this applies to exporting restrictions on rare earth elements.
During the regular briefing that day, the Ministry of Foreign Affairs asked questions about lifting up any of these export controls.
“As for specifics about the meeting, we will lead you to a Chinese reading and a joint statement from both sides,” provincial spokesman Lin Jiang told reporters in Beijing.
Yuyuan Tantian, a social media account with the state broadcaster CCTV, later said China’s rare earth export controls remained there.
On May 14, the Commerce Department issued two separate statements, suspending measures that blacklisted 17 Americans and suspending restrictions on more than two dozen US businesses. So far, the ministry has not issued a statement indicating the lifting of restrictions on rare earth exports.
Concerns over communist China’s dependence on rare earth treatment is growing in Congress.
“The Chinese Communist Party not only exports minerals, it exports leverage,” Sen. Todd Young (R-ind.) told the Senate Finance Committee on May 14.
“By controlling the midstream chokepoints of global mineral processing and using its electricity to limit the export of rare earth elements, Beijing is effectively turning raw materials into raw geopolitical pressures,” he told a hearing on trade in key supply chains.
