Parts of China that are rich in critical minerals are stepping up enforcement of tighter export controls as the country doubles down on its dominance of world supplies in the face of increasing pressure from the United States.
China, the world’s biggest producer of critical minerals, supplies 92 per cent of the refined rare earth elements that are essential in the production of consumer electronics, electric vehicles and hi-tech defence systems. Its export controls mean companies must obtain regulatory approvals from Chinese authorities before shipping such minerals overseas.
Authorities in places such as the Guangxi Zhuang autonomous region and the provinces of Guizhou and Hunan have been inspecting exporters’ operations and cracking down on illegal mining as they implement a directive from Beijing that called for tighter “whole-chain” control over strategic mineral exports, the state-owned Securities Times reported on Monday.
The moves come as Beijing continues to tighten its grip on global critical mineral supplies – a long-held ace in its dealings with Washington – after new US curbs on jet engine and chip design technology reignited bilateral tensions.
Securities Times said Hunan, in Central China, has pledged to map out all its strategic mineral exporters and help them strengthen their compliance systems and ability to follow export rules.
Guangxi, in South China, has vowed to step up supervision on the mining and exploration side, cracking down harder on illegal activities such as unlicensed extraction and mining outside approved areas.
Two cities, Wuzhou in Guangxi and Yunfu in Guangdong province, have established a cross-regional coordination mechanism to crack down on illegal mining, the newspaper said.