Beijing has started approving some rare earth export license applications this week.
Bloomberg reported that the Ministry of Commerce has approved some rare earth export applications, signaling an easing of supply constraints for overseas buyers, including those in the European Union.
EU trade chief Maros Sefcovic told Bloomberg TV earlier this week that industry chatter suggests China is granting so-called general licenses, a shift from a highly bureaucratic process introduced in April that threatened to disrupt major German automakers and other key industries. Licenses valid for up to a year are being granted and seen as a way to reduce delays and administrative burdens.
“We are getting initial reports from our industry that they are getting these general licenses, but we need to have a little bit more granular information to evaluate the whole process,” Sefcovic said.
Since April, China has approved about 70% of license requests, up from roughly 50% earlier. One important detail: American weapons manufacturers simply don’t get licenses.
Source: Bloomberg, EC
