China's Ministry of Commerce announced on November 7 that it has added rare earths to a list of bulk commodities that require traders to report import and export information.
Rare earths are critical to the manufacturing of EVs, robots, and other technologies. According to the US Geological Survey, China accounted for about 70% of the world's rare earths production in 2022. Other top producers include the US and Australia.
According to China's commerce ministry, information about the material type of rare earths, including compounds and alloys, and export destinations must be disclosed. The revised regulation will remain in effect until the end of October 2025.
Shanghai Securities Journal reported that a recent China State Council meeting discussed the development of the rare earths industry. The State Council said rare earths are strategic resources. The government has to coordinate the exploration, development, and utilization of rare earth resources.
Nikkei Asia, citing sources, said China's tightened regulation on rare earth exports might be a negotiating tactic ahead of the meeting between US President Joe Biden and Chinese President Xi Jinping.
In 2010, China significantly reduced its exports of rare earth materials to Japan during heightened tensions between the two nations concerning the Senkaku Islands, according to Nikkei Asia. China removed the restrictions in 2014 after the World Trade Organization found the move violated the WTO rules.
World's top 10 rare earth mine producers (data in metric tons of rare-earth-oxide (REO) equivalent) | |||
Country | Mine production 2022 (e) | Reserves | |
1 | China | 210,000 | 44,000,000 |
2 | US | 43,000 | 2,300,000 |
3 | Australia | 18,000 | 4,200,000 |
4 | Myanmar | 12,000 | NA |
5 | Thailand | 7,100 | NA |
6 | Vietnam | 4,300 | 22,000,000 |
7 | India | 2,900 | 6,900,000 |
8 | Russia | 2,600 | 21,000,000 |
9 | Madagascar | 960 | NA |
10 | Brazil | 80 | 21,000,000 |
Sources: US Geological Survey, Mineral Commodity Summaries, compiled by DIGITIMES Asia, November 2023
