China reportedly toughens process for firms to obtain rare earth magnet export licenses

The report says that Chinese rare earth magnet companies are facing a tougher time in trying to seek export license applications since September already. That is even before Beijing’s announcement last week here.

One of the sources noted that the review process is made much lengthier, in what looks to be a bid by China to further tighten its grip on products essential for use in military and commercial technology. The source also noted that applications are now being returned more often with requests for “additional information”.

Meanwhile, the approval process is also taking longer albeit still within the supposed 45 business days deadline set out by the commerce ministry. However, the overall feeling is that the process has moved back a step similar to how it was in April when Beijing really toughened its stance on rare earth exports to push the US into conceding on tariffs.

As a reminder, this is one of China’s biggest ace card in dealing with the US and it doesn’t look like they are being bashful about using it.

This article was written by Justin Low at investinglive.com.