Ministry: Rare earth export applications approved

China has been approving all compliant rare earth export applications for civilian use without delay, the Ministry of Commerce said on Thursday.

This comes after a survey claimed that several European businesses were already, or expecting to be, affected by China's export controls.

"To the best of my knowledge, the Chinese government has consistently approved compliant export applications for civilian use in a timely manner," said He Yadong, a ministry spokesman, at a news conference.

China has also actively implemented facilitating measures such as general licenses to promote compliant trade in dual-use items, thereby effectively safeguarding the security and stability of global industrial and supply chains, He added.

Dual-use items mean goods, technologies and services that may be used either for civil or military purposes, or to contribute to an increase in military potential, especially to design, develop, produce or use weapons of mass destruction and their means of delivery.

Early last month, China announced a one-year suspension of export controls on rare earths, super-hard materials and other strategic resources, with the suspension set to remain in place until Nov 10 next year.

On Monday, a survey released by the European Union Chamber of Commerce in China showed that once all of China's announced rare earth export control measures have been implemented, 60 percent of respondents expect "moderate" or "significant" disruptions to their supply chains. An additional 13 percent expect to face production stoppages or slowdowns.

Although 43 percent of respondents have yet to take a decision on how to respond to China's export controls, 36 percent intend to work with suppliers to develop more capacity outside of the country, the survey showed.

"Rare earth elements are vital to a wide range of high-tech industries and emerging technologies that are shaping the future of both the civilian and defense sectors," said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.

"It is incumbent upon major producers like China to implement appropriate control measures to prevent the misuse or diversion of these strategic materials," Zhou said. "China's decision to implement export controls on rare earths does not target any specific economies."

Meanwhile, China has been promptly approving rare earth-related export license applications for civilian end-use, to maintain the stability of global industrial and supply chains, he added.

In October, Commerce Minister Wang Wentao said that China has consistently provided facilitation for EU companies in the approval process during a video call with European Commissioner for Trade and Economic Security Maros Sefcovic.