China and the U. S. Rare Earth Trade: A Bumpy Road Ahead

China is working on a new way to handle rare earth exports. This could make things faster, but it won't undo all the restrictions that have been causing trouble. Industry insiders say that while there might be some easing, it's not the big change that the U. S. was hoping for.

Ministry of Commerce's New Approach

The Ministry of Commerce in China has told some companies that they might soon get permits that last a whole year. These permits would allow them to export more rare earths. But, officials say it might take a while to get everything set up, and not all companies have even been told about this yet.

Current Restrictions and Their Impact

Right now, China has strict rules about exporting rare earths. These rules have made it hard for companies to get what they need and have caused delays. The rules were put in place in April and got even stricter in October. They cover a huge part of the world's supply of these important materials.

U. S.-China Agreement and Its Limitations

Even though there was a recent agreement between the U. S. and China to ease some of these restrictions for a year, insiders say that the broader controls are still in place. It's going to be tough for companies, especially those linked to defense or sensitive sectors, to get these general licenses.

EU Companies Struggling with Licenses

Since April, companies in the European Union have been trying to get these licenses. They've filed about 2, 000 applications, but only a little over half have been approved. This shows just how strict the rules are.

Broader Trade Dispute and New Controls

There are also concerns about other materials. China has introduced new controls on things like silver, antimony, and tungsten. This is part of a bigger trade dispute between China and the U. S. It's a game of give and take, with both sides trying to get the upper hand.

Rabobank's Skepticism

Rabobank, a big bank, added to the skepticism. They said that the deal to ease rare earth export controls might be running into problems. They also pointed out that the U. S. has been adding more materials to its critical minerals list. This makes you wonder if the deal will last long-term.