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China has issued its first batch of new rare earth export licenses, a move expected to accelerate shipments to select customers. This streamlined licensing regime, centered on "general licenses," follows the Trump-Xi summit and aims to ease trade tensions. Companies like JL Mag Rare Earth have received licenses for most clients, signaling Beijing's commitment to agreed-upon outcomes.
China has issued the first batch of new rare earth export licenses that should accelerate shipments to certain customers, a source said on Tuesday, fulfilling a key outcome of the summit between Presidents Donald Trump and Xi Jinping.
China began designing a new streamlined rare earth licensing regime centered on so-called "general licenses" following the late October meeting between Trump and Xi that eased trade tensions between the two countries, Reuters exclusively reported in early November.
Chinese magnet maker JL Mag Rare Earth has received licenses for nearly all of its clients, while Ningbo Yunsheng and Beijing Zhong Ke San Huan High-Tech have secured licenses for some of their clients, the source said, declining to be identified due to the sensitivity of the matter.
The three firms and China's Ministry of Commerce did not immediately respond to questions.
All three companies sell to the automotive industry, according to their websites. JL Mag has a subsidiary in Europe and Yunsheng says it has clients in Europe and the Americas.
The introduction of the licensing regime is the latest evidence that Beijing is following through on the commitments that Washington says were agreed at the leaders' summit.
The White House has previously likened general licenses to the effective end of China's rare earth export controls.
While China has said little publicly about the new licenses, Reuters reported last month that they would supplement the existing licensing regime, not replace it, be valid for a year and allow much larger volumes of exports.
Under the regime first introduced in April, companies must get a license from Beijing for each shipment, a process that has caused major bottlenecks for customers around the world.
Currently only large rare earth companies are eligible to apply for general licenses, however, eligibility will widen if the regime is a success, the source said.
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Source: EconomicTimes
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