China keeps tight grip on rare earths, costing at least one company ‘millions of euros’

## China’s Rare Earths Restrictions Frustrate Foreign Businesses

This article highlights the ongoing challenges foreign companies face in accessing rare earth minerals in China, a situation exacerbated by increasing trade tensions and economic uncertainties.

• **Restricted Access:** The European Chamber of Commerce in China (ECCC) reports that foreign companies are still struggling to obtain consistent access to rare earths, critical materials for various industries.
• **Financial Losses:** At least one ECCC member has reportedly lost millions of euros due to these restrictions.
• **China’s Dominance:** China controls a significant portion of global rare earth production and reserves, allowing it to leverage this in trade negotiations.
• **Export Restrictions:** China has tightened export controls, requiring proof that rare earths won’t be used for military purposes and issuing single-use export licenses.
• **Uncertainty for Businesses:** Despite some initial improvements, obtaining export licenses remains challenging, creating uncertainty for businesses.
• **Impact on Confidence:** Foreign business confidence in China has declined, with many companies diverting investments to other regions.
• **EU Dependence:** The EU relies heavily on China for rare earth imports, making it vulnerable to these restrictions.
• **Calls for Change:** The ECCC is urging Beijing to address overproduction issues and give the private sector a greater role in key industries.
• **Looking Ahead:** European businesses are closely watching China’s upcoming five-year plan, as it will set the direction for future economic policies.

For more details, you can read the original article on CNBC: [https://www.cnbc.com/2024/08/29/china-rare-earths-restrictions-frustrate-foreign-businesses.html](https://www.cnbc.com/2024/08/29/china-rare-earths-restrictions-frustrate-foreign-businesses.html)