Chinese rare earth magnet firms face stricter export license scrutiny ahead of new controls - report

[Rare Earth]
wildpixel

Chinese rare earth magnet companies have reportedly been facing tighter scrutiny on export license applications since September, even before Beijing's move last week to expand controls over the critical minerals used in magnets.

Starting in September, obtaining an export license became harder, _Reuters _reported, adding, applications are now being returned more often with requests for extra information.

Approvals are taking longer, although generally still within the commerce ministry's 45 business-day deadline, the report said.

China produces nearly 90% of the world’s rare earth products [https://seekingalpha.com/article/4829549-rare-earth-hysteria-top-miner-and-chip-stocks-for-the-rebound], and countries around the world are racing to find solutions to reduce import reliance.

Rare earth stocks extended their rally on Monday as renewed tensions [https://seekingalpha.com/news/4503490-rare-earth-stocks-surge-on-us-china-tensions-arafura-soars-27-australian-strategic-materials-jumps-42]between Beijing and Washington over China’s export controls lifted hopes of alternative supply sources.

The development follows President Trump's statement Friday that the U.S. would retaliate against China over rare earth export controls, although he dialed back tensions a bit on Sunday, saying that relations with China "will all be fine" and downplaying the chances of an escalating trade war.

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