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China Issues First Batch of Rare Earth Export Licences to Ease Trade Pressures
China approves first rare earth export licences, boosting shipments to key customers and easing trade tensions with the US. European firms still report delays.
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by Muhammad Hashir
2025-12-02
China Issues First Batch of Rare Earth Export Licences to Ease Trade Pressures

China has issued the first batch of general rare earth export licences, a move expected to accelerate shipments to select customers and ease supply chain pressures, a source told Reuters on Tuesday. The licences are a key follow-up to the October summit between Presidents Donald Trump and Xi Jinping.

The approvals come after months of disruption caused by Beijing’s introduction of export controls in April amid the US-China trade war. Under the previous system, companies were required to apply for licences for each shipment, creating shortages that slowed production in industries such as automotive manufacturing and giving China significant leverage in trade negotiations.

The new “general licences” allow more exports under year-long permits for individual customers. Chinese magnet maker JL Mag Rare Earth reportedly received licences for nearly all its clients, while Ningbo Yunsheng and Beijing Zhong Ke San Huan High-Tech obtained permits for some of their clients. All three companies supply parts to the automotive sector and have international clients across Europe and the Americas.

The licences are designed to supplement, not replace, the existing licensing regime. Currently, only large Chinese rare earth firms are eligible, though criteria could expand if the rollout proves successful.

Despite the licences, questions remain about the scope and transparency of the export control system. European companies have continued to raise concerns about delays and a lack of clarity. It is also unclear whether licences will exclude certain sectors such as defense, aerospace, or semiconductors.

While the White House has hailed the general licences as effectively ending China’s rare earth export restrictions, Beijing has remained relatively quiet and has not indicated plans to fully dismantle its regime.

The new licences are expected to partially stabilize global supply chains, particularly in industries heavily reliant on rare earth materials, but observers caution that further developments will depend on how widely the licences are issued and whether additional restrictions remain in place.
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USChina

SupplyChain

ChinaTrade

RareEarths

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