Trade reset: China issues rare earth licences; questions persist over wider access

China’s rare earth industry is set for faster shipments to select buyers after authorities issued the first batch of new export licences, a step that follows months of disruption caused by Beijing’s tighter controls earlier this year. The move reflects a key outcome of the Donald Trump–Xi Jinping summit, according to Reuters.The approvals mark a shift from a system that forced companies to apply for each shipment individually, a process that created shortages across the auto supply chain and strengthened Beijing’s leverage in trade talks with Washington. Reuters reported that the new “general licences” were designed to ease those pressures and allow exports under year-long permits for specific customers.A source told Reuters that China has now granted these licences to several major suppliers, including JL Mag Rare Earth, Ningbo Yunsheng and Beijing Zhong Ke San Huan High-Tech, though some clients are still awaiting approval.Auto-linked suppliers receive clearancesJL Mag has received general licences for nearly all its customers, while Ningbo Yunsheng and Beijing Zhong Ke San Huan High-Tech have secured approvals for part of their client base, the source said, declining to be identified due to the sensitivity of the matter. The three companies and China’s Ministry of Commerce did not immediately respond to questions.All three firms serve the automotive industry among others, according to their websites. JL Mag operates a subsidiary in Europe, and Ningbo Yunsheng says it supplies clients in Europe and the Americas.The new permits will add to, rather than replace, the existing licensing system. For now, only large Chinese rare earth companies qualify for general licences, though eligibility could widen if the rollout proceeds smoothly, the source added.Gap remains between Beijing and WashingtonThe development narrows, but does not close, differences in how Washington and Beijing described the leaders’ summit in South Korea. The White House portrayed the general licences as effectively ending China’s rare earth controls, while Beijing has offered little public commentary and no indication its broader regime will be dismantled.It also remains unclear how widely the new licences will be granted or whether certain customers — including defence, aerospace or semiconductor-linked sectors — may be excluded.European companies, meanwhile, again raised concerns on Monday about delays and limited transparency in the existing export-control framework.