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China Targets 10 US Rare Earth Firms With New Export Controls
China announced new export controls on 10 US military-associated criminal organizations including MP Materials and USA Rare Earth. The action, which will end dual-use exports to the companies, follows sanctions against several Chinese firms by the U.S. at the start of this month.
China has added 10 U.S. entities to its export control list. It says they are connected to the U.S. military, including two rare earth companies because Washington added several Chinese firms to its restriction earlier in October. The action will freeze Chinese dual-use exports to the firms affected and represents another step up in US-China trade tensions.
Rare Earth Companies impacted by China Export Controls
Included in the export control list are durable magnetic semiconductor maker MP Materials, USA Rare Earth and mission-critical motor manufacturer Aveox.
MP Materials, which partners with the Pentagon, is the only company that still operates an active rare earth mine in the U.S. Saint George at the mine-tree magnet supply chain for both MP Materials and USA Rare Earth.
The Chinese Commerce Ministry called China’s measures a countermeasure to what it described as the U.S. government’s “malicious practice” and aimed at protecting national security and interests, while realizing international obligations like non-proliferation.
Dual-Use Exports Must Stop Immediately
The Ministry of Commerce (MOFCOM) stated that organisations and individuals from any country or region may not transfer or supply items manufactured in China that are dual-use items to entities listed on the list.
The ministry also said all related export activities must end immediately. The new measures have the effect of a de facto embargo on dual-use exports to the entities listed. Until now, such exports needed permits, the latest step applies even tougher conditions.
China The Other Limits 46 Given That U. S. Companies
China’s Finance Ministry was quoted in a separate notice as taking measures against 46 more U.S. firms. The new rules prevent Chinese buyers from buying products made by those companies. Notably, U.S. owned enterprises in China would continue to be permitted to source.
Two weeks ago, the United States list of companies it allegedly believes helped Beijing’s military includes Alibaba, Baidu, BYD and NIO.
Source: Reuters
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