Finance
China may relax rare earth export curbs for some chip companies
Published by Global Banking & Finance Review®
Posted on May 28, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 28, 2025
2 min readLast updated: January 23, 2026
China may ease rare earth export curbs for semiconductor firms, aiming to stabilize supply chains amid complex licensing issues.
BEIJING (Reuters) - China may relax curbs on exports of rare earths for Chinese and European semiconductor firms and other companies in their supply chain, state media said on Wednesday.
In April, China put seven rare earths and related products on an export control list, forcing all exporters to apply for licences, regardless of the nationality of overseas customers.
While a few licences have since been granted to exporters of rare earth magnets, used in the semiconductor, auto and defence industries, the complex licensing process can take months, and is already causing confusion at customs.
On Wednesday, the official China Daily said China could relax the controls for the supply chains of Chinese and European semiconductor companies, citing a single source.
The rare earth controls were discussed at a meeting between Chinese and European semiconductor firms hosted by China's commerce ministry on Tuesday, the paper said, where Chinese officials explained the application process.
"The meeting provided European Chamber members the opportunity to express in person the urgent need to accelerate approval processes, to ensure the stability of their supply chains," said Jens Esklund, president of the European Union Chamber of Commerce in China.
"This is imperative, as many European production lines will come to a halt very soon due to the shortage of crucial inputs," he added in a statement to Reuters.
(Reporting by Beijing and Shanghai newsrooms; Editing by Jane Merriman and Clarence Fernandez)
In April, China placed seven rare earths and related products on an export control list, requiring all exporters to apply for licenses.
Chinese and European semiconductor firms and their supply chains may benefit from the potential relaxation of export curbs.
The meeting addressed the urgent need to accelerate approval processes for export licenses to ensure the stability of supply chains.
Many European production lines are at risk of halting soon due to shortages of crucial inputs, making timely approvals imperative.
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