China starts drafting new rare earth export licensing system
China has begun designing a new licensing system for exporting rare earths—those crucial materials used in everything from electric cars to smartphones.
The move comes after talks between Presidents Trump and Xi, but it doesn't fully meet what the US wanted.
While some extra restrictions are paused until October 2025, strict controls from earlier this year are still making things tricky for global supply chains.
Permit process still tricky
The updated system could last a year and might help boost exports, but companies now need to share more details about their buyers—and many aren't up to speed yet.
Getting permits for defense-related shipments will still be tough.
Since China supplies over 90% of the world's processed rare earths, these rules really matter: only about half of EU requests since April have been approved, so headaches for industries like autos aren't going away anytime soon.