China keeps tight grip on rare earths, costing at least one company ‘millions of euros’

Beijing – According to the European Chamber of Commerce in China, Beijing still does not access the rare worlds that are critically needed.

ECCC said on Monday to journalists, at least one member lost “millions of euros”, he said.

Approximately 25 -year -old business organization refused to share the name of the affected company, but other members still do not have clarity in a consistent process to access minerals.

Rare soils are a category of minerals that are critical for products from cars to semiconductors. In 2024, China controlled more than 69% of rare soil mine production and almost half of the world reserves. US geological research.

Beijing benefited from this control in trade talks with the US and other partners. Since the end of last year, China has increased its restrictions on exports of rare worlds, and even demanded evidence that it would not be used for military purposes. China started to provide a disposable export license after a trade ceasefire in mid -May with the USA

German car manufacturer spokesman Volkswagen “Part supply containing rare lands is stable and we do not experience any famine. Our suppliers are constantly working with their subcontractors to obtain the necessary export licenses.”

However, ECCC said that after a purchase in June and July, members reported increasing difficulties in obtaining export licenses. The Business Group also stressed that licenses still do not guarantee stable access to rare worlds and increase uncertainty for businesses.

Almost half of the EU’s rare land imports Came from China Last year, according to Bloc’a Russia and Malaysia followed.

Increased restrictions on access to Nadir Earths are the last difficulty for international enterprises caught in the midst of trade tensions containing China.

When Pandemic Restrictions disrupt the supply chains, foreign business confidence in China has decreased since the COVİD-19-the inner economy remained stagnant, dragged with a real estate decline and excessive capacity in the industrial sectors.

Last week, the American Chamber of Commerce in Shanghai said that the members of the members between May and June showed that the confidence of the enterprises on the next five years has reached a new low level. The study also found that almost half of the participants – the highest registered – the planned investments for China directed to other regions, especially in Southeast Asia.

European and US businesses warned that in the third quarter, a rare Earths shortage over production deductions earlier this year.

ECCC, next week in Brussels in the European Union policy makers to update the business status is planning to discuss, he said. In addition, on Wednesday, the country has published its annual position certificate with various suggestions for China while preparing its next five -year plan.

The Chamber called on Beijing to think about ways to correct the main causes of excessive production and to give a larger role in large industries such as health services, where state institutions tend to swing in China to the private sector.

ECCC President Jens Eskelund said to journalists this week, the Chamber’s last meetings with the Chinese Ministry of Commerce said that the speech is based on access to rare worlds.

China’s senior leaders are planned to gather development targets for 2026-2030 in October. Beijing is organizing similar plans every five years. Released in 2021, the 14th version starts at the end of this year’s 15th next year.

European enterprises will closely monitor this meeting, because China is the second largest property partner of trade with a trade of $ 732 billion in 2024.

“Made in China 2025”, “I look at such plans, including all these things we fight [with] Currently, to a large extent, the result of the policy elections, “said Eskelund.” Therefore, these plans are actually important … They definitely determine direction. “

– Sam Meredith from CNBC contributed to this report.