He china government announced this Thursday a new expansion of restrictions on the export of rare earthsin a movement that reinforces its dominance over the world minerals market essential for technology and defense.
He Ministry of Commerce reported that the elements holmium, erbium, thulium, europium and ytterbiumalong with other derived materials, were added to the export control list. In the same statement, the organization detailed that it also dozens of pieces of equipment used for processing rare earths were added.
Starting with this update, exporters must apply for special licenses before sending any of these products abroad, as tightens state control mechanisms on a sector considered key to the global economy and geopolitics.
What are rare earths and what is their importance in the global economy?
Technological advance and the global energy transition exponentially increased the demand for rare earthsfundamental elements for the production of electronic devices, electric cars, renewable energy systems and high precision military equipment.
These minerals, which include neodymium, lithium, cobalt, tantalum and graphite, They are essential to manufacture high-power magnets, lithium-ion batteries, electronic circuits and industrial catalysts.
However, its uneven geographical distribution generated a strong international dependence. With close to 80% of the world’s supply under your control, China consolidated a dominant position in the market, using its productive power to influence business and strategic relationships with other countries.
This monopoly caused concern in the main Western powers, which They fear disruptions in the supply chain and denounce unfair business practices by the Asian giant.
New regulations and their impact on foreign trade
The new chinese regulations They came into effect this month and establish that only companies with their own export license may ship products abroad, which includes shipments destined for Argentina.
Although the measure could temporarily slow down importsconsulted specialists consider that the decision will improve transparency and will allow a greater control over the flow of strategic materialsreducing the risks of smuggling and irregular practices.
This way, China reaffirms its strategy more strictly regulate trade in critical resourcesconsolidating its leadership in a sector that became one of the pillars of the technological economy of the 21st century.
Source: Ambito
