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Trade Truce Risks Falling Apart Over Rare-Earth Exports

  • In April 2025, China introduced export controls on seven rare earth elements, requiring all exporters to secure licenses irrespective of the nationality of their overseas buyers.
  • In response to actions by the U.S. Commerce Department, China implemented a complex and prolonged export licensing procedure, which is generating customs delays and increasing concern within European supply chains.
  • On May 27, China’s Ministry of Commerce convened a meeting in Beijing with representatives from more than 40 semiconductor companies from China and Europe to outline export licensing procedures and explore potential regulatory relaxations.
  • Jens Esklund, European Union Chamber president, said accelerating approvals is “imperative” to prevent European production halts due to rare earth shortages in semiconductors and key industries.
  • The talks signal a potential relaxation of export controls to stabilize supply chains, reflecting China's role in semiconductor materials amid ongoing U.S.-China trade tensions.
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WTVB broke the news in on Wednesday, May 28, 2025.
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