Beijing says state owns China's rare earth metals
- Reference: 1719839715
- News link: https://www.theregister.co.uk/2024/07/01/china_rare_earth_clampdown/
- Source link:
The Chinese government has approved new regulations governing the mining, smelting, and trade in so-called rare earth elements, which include critical minerals used in cutting-edge semiconductors, electric vehicles, and wind turbines.
According to reports, the regulations define rare earths – a group of 17 minerals – as the property of the Chinese state, and insist that no organization or individual is allowed to claim them.
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Official state news outlet the Xinhua News Agency said that Premier Li Qiang of the State Council signed the order on June 29, which will come into effect on October 1.
[2]
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Xinhua [4]reports (Google translation) that the state will implement a unified plan for the development of the rare earth industry. The aim is to encourage and support the research and development of new technologies, processes, products, and new materials and equipment, it says.
Regulations will be implemented to control the total amount of rare earth mining and smelting. Additionally, Beijing intends to introduce a product traceability system to "strictly manage circulation" of rare earths.
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According to [6]Nikkei Asia , underground resources in China already belong to the state, but illegal mining and smelting of rare earth elements is known to happen in the private sector, and it seems that Beijing is keen to tighten its control over them.
The regulations are also understood to stipulate new legal penalties covering illegal activities around rare earth mining and smelting.
While the Chinese authorities are pitching these new controls as simply better management of rare earths, talking of "safety, scientific and technological innovation, and green development," the move is likely to be seen in Washington and elsewhere as Beijing tightening its grip on key resources in retaliation for sanctions imposed by the Biden administration.
[7]China bans export of rare earth processing kit
[8]Prices of gallium and germanium rise as China export controls loom
[9]China chip material export controls just the tip of the iceberg, warns official
[10]Huge lithium discovery could end world shortages ... Oh, wait, it's in Iran
China is said to be the largest source of rare earth elements and critical minerals. According to the [11]Center for Strategic and International Studies , the country produces 60 percent of the world's rare earths, but is responsible for processing nearly 90 percent, importing rare earths from other countries and processing them, which gives China "a near monopoly."
Late last year, China [12]imposed a ban on the export of rare earth extraction and separation technologies, as The Register reported at the time.
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Also last year, Beijing [14]imposed restrictions on exports of two elements used in semiconductors, gallium and germanium, as well as many compounds containing these elements, such as indium gallium arsenide. Anyone wishing to ship those materials outside of China now has to apply for a permit from the country's Ministry of Commerce.
Those measures were also claimed by China as necessary to safeguard national security, but were widely viewed as retaliation for blocks on technology exports to China by the US and other countries. One Chinese official [15]warned at the time that "this is just the beginning of China's countermeasures."
A recent [16]Insider report claimed that Congress is aware that US stockpile levels of critical minerals deemed essential for its national security are insufficient, but official figures aren't available to the public.
It warned that the US was depending heavily on Japan and South Korea as alternate sources for supplies of rare earth minerals, but that such supply lines could not be relied upon should relations with China deteriorate to the point where armed conflict breaks out. ®
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[4] https://www-gov-cn.translate.goog/yaowen/liebiao/202406/content_6960162.htm?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp
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[6] https://asia.nikkei.com/Business/Markets/Commodities/China-says-rare-earths-belong-to-state-in-new-regulation
[7] https://www.theregister.com/2023/12/22/china_tech_export_bans/
[8] https://www.theregister.com/2023/07/27/prices_of_gallium_and_germanium_rise/
[9] https://www.theregister.com/2023/07/05/china_chip_export_restrictions/
[10] https://www.theregister.com/2023/03/04/lithium_iran_china_shortage/
[11] https://www.csis.org/analysis/what-chinas-ban-rare-earths-processing-technology-exports-means
[12] https://www.theregister.com/2023/12/22/china_tech_export_bans/
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[14] https://www.theregister.com/2023/07/03/china_semiconductor_export_restrictions/
[15] https://www.theregister.com/2023/07/05/china_chip_export_restrictions/
[16] https://www.businessinsider.com/us-rare-earth-minerals-stockpile-mystery-opacity-worries-experts-2024-6
[17] https://whitepapers.theregister.com/
Re: Meh
You missed the significance of this statement: “ According to the Center for Strategic and International Studies, the country produces 60 percent of the world's rare earths, but is responsible for processing nearly 90 percent, importing rare earths from other countries and processing them”
Basically, we need to stop sending rare earths to China - whether that is in the form of ore’s or scrap, as once in China, they will belong to the (Chinese) state and subject to export restrictions. Those new fabs being built in the US, are going to need non-Chinese sources/supply chains for their raw materials; as will all those EV supply chains (raw earths aren’t just used in the battery)…
Re: Meh
@Roland6
"You missed the significance of this statement:"
No I didnt, I answered it. In fact the second part of your comment pretty much follows what I said about passing the dirty job to China because we dont want to do it. No other reason.
Vietnam beware
Vietnam has [1]19% of known reserves vs China's 38%. You might notice that Vietnam is next to China which might decide to put pressure on Vietnam to maintain control of these rare earths.
China mines much more than do other countries, so a few others could start digging it out if/when China starts throwing its weight around -- although it would take several years to ramp up production.
Until then it is a case of too many eggs in one basket.
[1] https://elements.visualcapitalist.com/rare-earth-elements-where-in-the-world-are-they/
Re: Vietnam beware
It’s not just Vietnam, Cambodia has much of the same geology, so the expectation is that it too will have significant reserves, albeit currently poorly researched and mapped. Similar considerations apply to Thailand. Which would suggest China will be looking at the Indochinese Peninsula as its own backyard…
Re: Vietnam beware
Lucky for us that our long term friends and allies, Vietnam and Cambodia, have such reliable supplies
Remember, US levels of just about "anything" are strictly due to regulation
We don't mine. We don't do "dirty". Just as with fossil fuels where briefly we became the number one producer, even without all the building btw, the USA bottleneck is usually self inflicted. So, maybe not as "scary" as the headlines make it out to be. But, some things would take "time" to get back up and running and expanded. So, I wouldn't say the USA is "tapped out", but rather, we "ban ourselves" to restrict "the dirty" stuff. Just my observation.
Give them a chance
China is a newly developed economy. They still naively believe that the govt should be involved in resources vital to their national interests.
Once they become a more fully developed modern economy they will realise that these elements must be owned by hedge funds and sovereign wealth funds of other countries.
Re: Give them a chance
This ^^^
Ah the resource wars
Well on track for the 2077 date.
Now who is making the vaults?
Biter bit?
Practically everything in the US involving China has strings attached these days, everything from semiconductors to space exploration via STEM students, and its all in the name of 'national security'.
Re: Biter bit?
The vicious irony is that all the "national security" restrictions will eventually result in a reduced quality of life for the people, who will themselves become a national security threat if this idiocy goes on long enough.
Re: Biter bit?
I think you will find that practically everything in Chine involving the USA (or others) also has strings attached these days.
Cheap pollution
Rare earths are not so rare and if you have one of them you can extract the others.
The catch is that a lot of industrial waste is created when processing them.
Environmental conservation, the CCP has heard of it but never seen it so it far cheaper to process them in the PRC.
Meh
I am not sure this is really a problem. Rare earths are not rare, we just dont want to process them in 'green' countries because its not very green nor pleasant to do.