Reinforces its control over rare land or Chinaas the government today issued (22.8.25) young people regulations for the extraction and processing of critical raw materials.
In the future, the existing quotas system and imported raw materials will be included in the already existing raw materials, as announced by the Ministry of Intelligence and Intelligence Technology in Beijing. The measure is following a listening process in progress since February.
According to analysts, the inclusion of imported ores marks a further reduction in the supply of rare land. Recently, China has granted the first mining and melting quotas for 2025 without the usual public announcement, according to the Reuters news agency in July.
Rare Gaia is a group of 17 elements required for products such as lasers, military equipment, as well as magnets in electric cars, wind turbines and electronic entertainment.
China is the dominant supplier worldwide and is increasingly using its market power as a political instrument. In April, the People’s Republic imposed inspections on exports in the context of trade dispute with the US, including rare earth metals. These include, among other things, particularly powerful magnets, which are used in car motors, but also in speakers, power windows or wipers.
Lack of materials in Germany
China has justified the measure it has taken amidst the US trade dispute with the protection of national security and the fight against illegal raw material transactions.
The restriction by the Chinese government has also affected the German economy. 12.7% of electrical equipment manufacturers complained in July about lack of materials, as found by the IFO Institute of Munich in its research. In April, this figure was 5.7%, that is less than half.
“This is probably a consequence of Chinese restrictions on exports and the trade of certain rare earths,” said IFO research chief Klaus Wohlrabe. Germany depends on China for rare land: last year, 65.5% of imports came from the People’s Republic, according to the Federal Statistical Service.