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China has recently enhanced its restrictions on exporting rare earth elements, including five additional elements—holmium, erbium, thulium, europium, and ytterbium—along with various refining technologies, effective November 8th.
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The new regulations prohibit overseas defense entities from obtaining export licenses and impose strict controls on advanced semiconductor manufacturing, including chips measuring 14 nanometers or smaller and memory with 256 layers or more. Licensing for related research and development is also affected.
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Foreign producers using Chinese rare earth materials or equipment in their final products will now need export approval from China, even if no Chinese companies are involved in the transaction.
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These measures mirror U.S. restrictions on semiconductor exports to China and aim to increase Beijing’s leverage ahead of expected high-level meetings with the U.S., scheduled for later this month in South Korea.
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The restrictions encompass dozens of mining and refining tools and materials, with enforcement beginning just before a 90-day trade truce with the U.S. expires. Regulations concerning foreign companies exploiting Chinese rare earths go into effect on December 1st.
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In addition, China has declared that international defense applications will no longer qualify for export licenses, and approval for advanced chip applications will be evaluated individually. This applies to cutting-edge chips, memory, and related production equipment, as well as AI research with potential military uses.
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South Korea, home to major memory chip companies Samsung and SK Hynix, is currently reviewing these new restrictions and is in ongoing discussions with China to mitigate their repercussions. TSMC, Taiwan’s prominent chipmaker, saw its shares increase after reporting strong third-quarter revenue, despite the geopolitical concerns.
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Despite some ongoing increases in Chinese rare earth exports due to licensing amnesties, many foreign users still face difficulties obtaining the necessary permissions. China’s latest restrictions are expected to impact global supply chains but include measures to facilitate licensing processes.
الوسم: trade restrictions
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China Tightens Rare Earth Controls, Targeting Defense & Semiconductors
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India Urges China: Lifting Trade Curbs Essential for Normalization
Indian Foreign Minister S. Jaishankar (left) and Chinese Foreign Minister Wang Yi. — X/@DrSJaishankar/File - India calls for resolution of border disputes.
- Emphasizes the importance of avoiding trade barriers for mutual cooperation.
- Chinese Vice President stresses the need to acknowledge each nation’s concerns.
On his visit to Beijing, India’s Foreign Minister Subrahmanyam Jaishankar emphasized the need for India and China to ease tensions along their disputed border. He urged both nations to withdraw troops and refrain from imposing “restrictive trade measures” to restore relations.
This diplomatic visit marked Jaishankar’s first trip to China since 2020, following a violent confrontation that resulted in a four-year military standoff. Relations began to improve last October when both countries agreed to de-escalate.
During his meeting with Chinese Foreign Minister Wang Yi, Jaishankar noted that “significant progress” had been made in normalizing relations due to recent efforts to resolve border friction.
The poorly defined border stretches approximately 3,800 km (about 2,400 miles) and has been a source of dispute since the 1950s. The two countries fought a short but intense border war in 1962, and negotiations over the border issue have moved slowly over the decades.
Recently, Indian Defence Minister Rajnath Singh called for a “lasting solution” to the border dispute, signaling New Delhi’s renewed commitment to a definitive outcome.
Jaishankar stated, “We must now address other border-related issues, including de-escalation,” emphasizing that cooperation would thrive best if trade barriers and hindrances were eliminated. His remarks come amid concerns over China’s recent restrictions on key resources like rare earth minerals and machinery needed for high-tech manufacturing.
Despite possessing the fifth-largest reserves of rare earth elements, India’s domestic production capabilities remain limited.
Jaishankar’s visit is tied to a Shanghai Cooperation Organisation foreign ministers’ meeting, during which he also spoke with Chinese Vice President Han Zheng. According to Xinhua, Han remarked that both countries should work to enhance practical cooperation while respecting each other’s concerns.