China allowed some rare ground mineral shipments to enter new rules for export controls, but the slow pace of approvals threatens to disrupt global supply chains, according to the Financial Times newspaper quoted participants in the sector.
In early April, Beijing imposed restrictions on the export of 7 rare ground elements and basic magnets, which are vital elements of products ranging from electric vehicles, wind turbines, human -like robots and combat aircraft.
Approvals
Chinese exporters, industrial groups and experts in supply chains reported that after weeks of delay, the Chinese Ministry of Trade agreed to some export licenses to Europe, but at a much slower pace than to meet the request.
“The opportunity to avoid great harm to production in Europe quickly fades,” the British newspaper quoted a member of the German Federation of Industry Federation, Wolfgang Nedermark, as saying.
American manufacturers, including Tesla, Ford and Lucheid Martin, have expressed concern about the new Chinese export controls in recent investors.
The newspaper quoted a European executive in China, who did not reveal his identity, as saying that the current delays “cannot be possible” for foreign manufacturers, adding, “What I witness on the ground is a real lack of efficiency; they have reduced the appreciation of the expected impact and what should be prepared for it at the level of work.”
China’s expansion of its controls on rare ground mineral exports came in response to the comprehensive tariffs announced by US President Donald Trump on April 2.
https://www.youtube.com/watch?v=euezylnmcyc
These controls, which obligated exporters to obtain licenses from the Ministry of Commerce officials for the seven targeted ground mineral charges and the basic magnets made, shed light on the geopolitical influence that China’s dominance of global mineral supplies.
According to the newspaper, it is unclear whether China has begun to agree to exports to the United States since the two economic powers agreed to stop the war of definitions this month.
Yantai Chenghai, magnetic materials, an export company based in eastern Shandong Province, has obtained export licenses, and “has resumed” receiving requests from some customers.
In a separate context, two informed sources said that at least one charge was approved to the German Volkswagen Volkswagen Company.
Volkswagen confirmed the stability of its supplies from the pieces that contain rare ground minerals, and that its suppliers were given “a limited number of export licenses.”
There are large -scale fears in the industrial sector that the licensing bureaucracy in China will burden them with the increase in the number of requests, according to the newspaper.
The European Executive Authority said that European companies are “not sure about how to prove” not to re -export their shipments to the United States, which is violating the conditions of the license.
challenge
The President of Tesla Illon Musk said last month that China sought guarantees that the rare ground mineral magnets that his company needs for robots will not be used for military purposes, and said, “This is an example of the challenge there. I am sure that we will overcome these problems.”
The CEO of the automotive unit of Mahandra & Mahindra Indian Rajesh Jiguricar said that obtaining the final use certificate – which aims to ensure that weapons supplies are not used – is not clear at the present time.
https://www.youtube.com/watch?v=9u8wciiono4
A director of the Chengdu Galaxy Magnits, which sells permanent magnets, said that stopping the shipments related to military purposes was a source of concern to the Chinese authorities, adding that its company helps customers to provide data to the authorities to obtain the approval of export, but the “military -related” purposes are not permitted.
The newspaper quoted the official without revealing its identity, as saying, “It may be allowed to export for non -military applications.”
The main magnets are used in combat aircraft such as the F-35 produced by Lockheed, and new controls are expected to cause short-term problems and impose long-term transformations in the supply chain.
Evan Scott, financial manager of Lockheed, said this week that the company has enough rare ground materials for this year, and expected that the American authorities will give priority to the supply of Lockheed “due to the importance of our programs.”
Approvals
In light of the temporary truce between the United States and China for a period of 90 days, Combes expects the Ministry of Commerce to give more approvals, but he warned of the continuation of uncertainty, saying, “Everyone wants the Ministry of Commerce to clarify matters. But China’s strategic influence depends on its ability to use the export control arm to the extent that the United States does not make a satisfactory deal.”
Experts said that the latest controls on rare ground minerals would enhance Western efforts to reduce its dependence on China.
