China's Export Controls on Rare Earths

China's Export Controls on Rare Earths
  • Context: 

  • China has announced new restrictions on the export of certain rare earth elements (REEs) and their related technologies.  

  • This move comes ahead of a meeting between the U.S. President Donald Trump and Chinese leader Xi Jinping. 

  • What are Rare earth elements? 

  • They are a group of 17 vital materials used in a wide range of products, from electric vehicles (EVs) to military radar systems. 

  • China holds a dominant position in the global market, accounting for nearly 70% of the world's rare earth mining and approximately 90% of global processing.  

  • New Export Regulations:  

  • The new regulations, announced by China's Ministry of Commerce, include: 

  • A requirement for foreign companies to get special approval to export any items that contain even small amounts of rare earths sourced from China 

  • The imposition of permitting requirements on the export of technologies related to rare earths that include mining, smelting, recycling, and magnet-making.  

  • Five Newly Restricted Rare Earth Elements:  

  • The newly added elements and their key applications are: 

  • Holmium (Ho): It is used in semiconductors, magnets, laser surgery devices, and as control rods for nuclear reactors. 

  • Erbium (Er): It is primarily used in fibre-optic communications and infrared technology. Erbium oxide is also used to produce infrared-absorbing glass. 

  • Thulium (Tm): It is used in X-ray equipment, laser technology, and ceramics in microwaves. It is fluorescent under UV light, which makes it useful in combating counterfeiting

  • Europium (Eu): It is the most reactive rare earth element. It's used in control rods for reactors and in glowing materials for applications like medical imaging

  • Ytterbium (Yb): A volatile element that can be a radiation source in X-rays and has applications in nuclear medicine