Bloomberg
China has imposed export controls against two US rare earth producers that are part of Washington’s effort to reduce its dependence on Beijing by establishing an alternative supply chain for the critical minerals.MP Materials Corp and USA Rare Earth Inc have been added to China’s export control list to “safeguard national security and interests,” the Chinese Ministry of Commerce said in a statement Monday.The decision ends a months-long lull in China’s use of such restrictions against US companies following last October’s summit between US President Donald Trump and Chinese President Xi Jinping (習近平). In a separate statement, the Commerce Ministry said the move was in response to the Pentagon’s decision this month to add some of China’s biggest companies to a roster of firms it accuses of supporting the Chinese military.
A wheel loader takes ore to a crusher at the MP Materials rare earth mine in Mountain Pass, California in 2020.
Effective immediately, China’s designation prohibits these US companies from access to items that can be used for both commercial and military purposes.The order bans organizations and individuals around the world from transferring or providing them with dual-use items originating in China, effectively extending the scope of export controls beyond Chinese borders.
