Berlin [Germany], July 1: China's government has issued stricter regulations on rare earths, adding punishments for illegal mining, processing, imports or exports of the sought-after metals.
Chinese Premier Li Qiang signed a decree to this effect at the weekend, according to the state news agency Xinhua. China is a major producer of rare earths, which include 17 elements.
The rare earths are important for a range of applications, including the production of batteries and electric cars.
The stricter regulations on the handling of these important raw materials also stipulate that rare earths belong to the Chinese state and that no organization or individual may claim or destroy them. The state, in turn, must mine the resources carefully and has control over how much of it is mined and processed.
The rules are due to come into force on October 1 of this year.
In 2022, China mined around 70% of all rare earths globally, giving the country a near monopoly on the market. China also held an 85% share in the processing of these important resources, which is often very environmentally harmful.
According to data from the German Federal Statistical Office, Germany imported around 66% of its rare earths from China between January and November 2022.
Companies in the semiconductor industry and manufacturers of everything from cell phones to electric cars are dependent on trade in metals with China. Last year, China imposed export restrictions on three types of rare earths - germanium, gallium and graphite - amid trade tensions with the United States and the European Union.
Source: Qatar Tribune