According to a survey conducted by the European Union Chamber of Commerce in China, by September 9, China’s Ministry of Commerce had approved only 19 out of 141 license applications, with 121 still pending and one rejected due to data errors.
Of these applications, 121 were classified as “urgent.” The lack of approvals led to seven production disruptions in August and could result in 46 in September and an additional ten by year’s end, including seven in October.
The survey, published today, was conducted using information from 22 companies between August and early September.
The Chamber attributes these difficulties to a regime announced in April, which restricts exports and requires licenses for the export of seven rare earth minerals, including samarium, gadolinium, and dysprosium, as well as high-performance magnets.
However, despite Beijing’s promises to expedite processes following the China-EU summit in July, the organization notes that many companies continue to encounter obstacles that “not only entail high financial costs but also threaten the stability of supply chains.”
“Obtaining export licenses for rare earths is currently the most pressing issue for many of our members,” stated the Chamber’s president, Jens Eskelund, who called for a “clear, predictable, and reliable” system to reduce uncertainties and alleviate trade tensions between Brussels and Beijing.
