China issues rare earth export permits to the West for the first time since trade agreement

Export permits issued to three major rare earth companies

"Valid for one year as a complement to the existing licensing system"

China has issued rare earth export permits for the first time since the trade agreement with the United States. This is the first time China has granted rare earth export permits to the West since the summit between President Trump and President Xi Jinping in Busan at the end of October.

On the 2nd (local time), Reuters reported that three Chinese rare earth companies, including magnet maker JL Mag Rare Earths and Ningbo Yansheng, have secured export permits for almost all customers or for some customers.

All three companies sell rare earth products to automakers. JL Mag has a subsidiary in Europe, and Ningbo has customers in Europe and the Americas.

Currently only large rare earth companies can apply for general export permits, but sources said the eligibility for exports will be expanded in the future.

The White House said that controls on China’s rare earth exports were effectively over after the Trump-Xi meeting, but it actually took more than a month to issue the export permits.

According to Reuters, the permit does not replace the existing licensing system but supplements it, has a one-year validity period, and will significantly increase export volumes.

A rare earth export licensing system was first introduced in April this year. Under this system, Chinese rare earth companies must obtain permits from the Chinese government, and delays in approvals have put pressure on global rare earth supply.

Kim Jeong-ah, contributing reporter kja@hankyung.com