China approves rare earth export licenses, to monitor steel shipments

China has granted general export licenses for rare earth-related commodities to some qualified domestic exporters, the country's Commerce Ministry confirmed on Thursday. The announcement clarifies the operational status of controls on the critical minerals, which Beijing first imposed in October, and comes alongside a separate decision to reintroduce export licensing for certain steel products next year.

Implementation of Rare Earth Controls

Ministry spokesperson He Yadong stated, "To my knowledge, we have received and approved applications for general export licenses for rare earth-related items submitted by some Chinese exporters." He explained that relevant agencies have informed exporters about the policies since the controls were established. Several firms have reportedly met the basic application conditions after gaining necessary export and compliance experience. Notably, China had previously suspended these specific controls on rare earth exports to the United States for one year.

New Licensing Regime for Steel Exports

In a significant parallel development, the ministry, in a joint statement with the General Administration of Customs, declared that China will manage exports of some steel products through an export licensing system effective January 1, 2026. This marks the first reinstatement of such management for steel in 16 years. The system will cover approximately 300 customs codes and is described as primarily for improving export monitoring, statistical analysis, and quality tracking. He Yadong emphasized that the measures are consistent with World Trade Organization (WTO) standards and do not set limits on export volumes or restrict which companies can trade.

Broader Trade Context and Criticism

The announcements occur amidst heightened global trade tensions, particularly surrounding green technology and industrial goods. The spokesperson used the briefing to voice China's opposition to the European Commission's recent intensive investigations into multiple Chinese enterprises under its Foreign Subsidies Regulation. For nations like Türkiye, which carefully monitors global trade policies and supply chain security, these Chinese regulatory shifts in key industrial sectors represent important developments that could influence international market dynamics and strategic industrial planning.