China has given the first batch of new rare earth export licenses that should boost shipments to certain clients, a source said on Tuesday, fulfilling a key outcome of the summit between Presidents Donald Trump and Xi Jinping.
After Trump and Xi met in late October, which reduced trade tensions between the two nations, China started developing a new simplified rare earth licensing system based on so-called "general licenses," as Reuters exclusively reported in early November.
Chinese magnet maker JL Mag Rare Earth has acquired licenses for practically 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 added, declining to be identified due to the delicacy of the topic.
The three corporations and China's Ministry of Commerce did not immediately react to questions. According to their websites, all three businesses sell to the automotive sector. Yunsheng claims that JL Mag has customers in both Europe and the Americas, and the company has a subsidiary in Europe.
The latest indication that Beijing is adhering to the promises made at the leaders' meeting, according to Washington, is the implementation of the licensing regime. The White House has previously linked general permits to the effective abolition of China's rare earth export limits.
While China has said little publicly about the new permits, Reuters reported last month that they would enhance the existing licensing regime, not replace it, be valid for a year and allow significantly bigger volumes of exports.
The policy, which was initially implemented in April, requires businesses to obtain a license from Beijing for every shipment. This procedure has resulted in significant delays for clients worldwide.
Currently only major rare earth corporations are eligible to apply for general licenses, however, eligibility will extend if the regime is a success, the person said.
