China drafts one-year licenses as rare earth curbs stay

China is designing a new general licensing regime for rare earth exports that would shorten approval times while keeping the broader controls introduced in April in force, according to people familiar with the discussions. The permits are expected to last one year and could allow larger shipment volumes, though full rollout may take months.

In recent briefings, the Ministry of Commerce outlined the documents exporters and end users will need to submit, and companies have begun preparing applications. Exporters expect more clarity by year-end. Licenses are likely to require more detailed information from customers, and approvals will be tougher for buyers linked to defense or other sensitive sectors, industry participants indicated. Some firms have yet to receive formal notice of the changes.

The White House has stated that China agreed to introduce general licenses and characterized them as effectively ending export controls. Chinese officials have told counterparts they are working on the licenses, while the commerce ministry has not publicly addressed the status of the April measures.

Following an agreement between Presidents Donald Trump and Xi Jinping, China paused for one year the extra restrictions it imposed in October. The April framework, however, still requires a license for every cargo, a process companies report has slowed deliveries and contributed to shortages in May that disrupted parts of the auto industry.

China accounts for more than 90% of global output of processed rare earths and rare earth magnets used in products ranging from cars to missiles. Since April, European Union firms have filed roughly 2,000 export-license applications, with just over half approved, according to people briefed on the figures.

As earlier reported by GNcrypto, Beijing agreed with Washington to issue general licenses for rare earths and key inputs such as gallium, germanium, antimony and graphite, and to halt probes involving U.S. chip firms. The understanding paused the newest restrictions announced in October for one year but did not unwind earlier rules from 2024–2025, which added licensing and reporting over rare earths, magnet technology and graphite.