One of China’s largest producers of rare earth elements has pledged to “strictly enforce government guidance” on export controls, a show of support from a major industry player as US officials harshly criticise Beijing’s recent expansion of licensing requirements for the crucial minerals.
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The statement from China Rare Earth Group – a conglomerate of state metals firms formed in 2021 – serves as a reaffirmation of Beijing’s resolve in consolidating its oversight of the rare earths trade, despite efforts by the United States to make the measures a rallying point in the wide-ranging trade conflict between Washington and Beijing.
In a post published on its official website Thursday, the group said under a “complex and challenging” external environment, all operations must follow laws and regulations to ensure “alignment with national policies”. The state-owned company named regulatory compliance as a “key operational focus” for the fourth quarter.
Gong Jiong, an economics professor at the University of International Business and Economics in Beijing, said China’s rare earth export controls are long-term policies that will not be reversed, and all enterprises in the industry must follow.
“There may be room for flexibility in implementation by streamlining approval procedures or making commitments to maintain global supply chain stability, ultimately depending on the progress of the coming foreign trade negotiations,” he said.
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The group’s statement comes amid a flurry of attention on the global supply of rare earths. The White House confirmed on Friday that US President Donald Trump and Chinese President Xi Jinping will meet in South Korea on October 30, with Beijing’s near-monopoly position in the supply and processing of the minerals granting it significant leverage in any trade negotiations.
Meanwhile, the European Union is weighing potential countermeasures in response to China’s recent action on rare earths.