The Chinese government has been continuing export controls on rare earth elements since last month, but it is reported to have granted export permits for rare earth elements to some Korean corporations. Rare earth elements are essential mineral resources for high-tech industries such as smartphones, computers, and electric vehicles, with a particularly high dependence on imports from China.
According to industry sources on the 25th, China’s Ministry of Commerce is said to have approved rare earth element exports to multiple Korean corporations this month. An industry official noted, "Recently, export permits for rare earth elements have been granted to some Korean corporations," adding that the approval process takes up to 45 days.
Since the Chinese government implemented export controls on seven types of rare earth elements on the 4th, this is the first confirmed case of export permits granted to Korean corporations.
After the Chinese government announced last month that the United States would impose a 34% tariff on Chinese products, it responded by imposing the same tariff on U.S. products and announced that it would implement export controls on seven types of rare earth elements globally.
The items subject to export control include ▲samarium used in cobalt magnets ▲gadolinium used as a contrast agent ▲terbium, which is a raw material for phosphors ▲dysprosium, which is added to magnets for motors or electric vehicles ▲lutetium used in radiation therapy ▲scandium, which is used for aircraft parts with aluminum alloys ▲yttrium, which is used in the manufacture of solid-state lasers.
Despite reaching a "Geneva Agreement" on the 12th to mutually reduce tariffs with the United States for 90 days, China has maintained its export controls on rare earth elements. However, at the end of last month, as the Chinese government granted export permits to four rare earth magnet companies, including "Baotou Tianhe Magnetics," which supplies rare earth magnets to the German automaker Volkswagen, concerns about a "rare earth crisis" have somewhat eased.
However, even if exports are permitted to some corporations, the overall policy direction of China's export policy can change at any time, leaving significant uncertainty. A government official stated, "The government cannot confirm the export permit status of individual corporations," and added, "We are closely monitoring China’s export control policy and responding accordingly."