China Considers Easing Rare Earth Export Controls for Chinese, EU Semiconductor Firms

China is considering relaxing its recent export restrictions on rare earth elements for Chinese and European semiconductor companies, aiming to stabilize global supply chains amid industry concerns. The restrictions, imposed in April, require exporters to obtain licenses for shipping rare earths and related products, causing delays and confusion at customs, and threatening European manufacturing supply chains. A meeting hosted by China's Ministry of Commerce with over 40 Chinese and European semiconductor firms clarified the complex application process and signaled a potential easing of controls. Jens Esklund, president of the European Union Chamber of Commerce in China, emphasized the urgent need to accelerate approvals to prevent disruptions in production lines. China dominates rare earth processing globally, controlling over 90% of processing and 70% of extraction, making these export controls a significant factor in global tech supply chains. The possible policy shift reflects China's stated commitment to global industrial stability and cooperation with European partners.