Catenaa, Tuesday, June10, 2025-China said last Friday it is open to increasing cooperation with other countries regarding its rare earth export controls, amid growing international concern over potential disruptions to critical supply chains.
Foreign Ministry spokesperson Lin Jian stated Beijing was prepared to “strengthen dialogue and cooperation” to support the stability of global production, signaling a softer stance just weeks after new restrictions were imposed on the export of rare earth materials.
The measures, introduced in early April, require exporters to secure government licenses a procedure that has led to supply bottlenecks, especially in Europe and India.
While licenses have been issued to select suppliers, including those serving Volkswagen, Indian automakers warned they have yet to receive any and may be forced to halt production as early as June due to shortages.
Rare earth elements are crucial for manufacturing electric vehicles, consumer electronics and defense systems.
China processes more than 90% of the global supply.
Chinese state media reported the Ministry of Commerce may ease some restrictions, particularly for Chinese and European semiconductor firms, following industry consultations earlier this week.
The diplomatic overture follows reports that the United States has halted certain critical tech exports to China, including components for state-owned aircraft manufacturer COMAC.
Washington’s move is seen as a direct response to China’s tightening grip on key mineral exports.
Beijing’s comments hint at a desire to avoid escalation while maintaining leverage in its geopolitical and economic standoff with the West.
