EU: "China Issues General Permits for Rare Earths"... Supply Chain Relief Expected

Breathing Room for European Automakers and Other Industries

Bloomberg News reported on December 15 (local time) that China has begun issuing long-term "general permits" that allow European companies to procure key minerals, including rare earth elements.

Maros Sefcovic, European Union (EU) Commissioner for Trade and Economic Security. Photo by AP Yonhap News

According to Bloomberg News, Marosi Chefchovich, European Union (EU) Commissioner for Trade and Economic Security, stated regarding China's issuance of rare earth permits, "We are receiving initial reports from our industry that general permits are being granted."

Back in April, China introduced a permit system to control rare earth exports in response to reciprocal tariffs imposed by the United States, causing significant disruption across global industries. Since then, the European Commission has been working to introduce a "general permit" that would allow pre-approved buyers to repeatedly ship rare earth elements over a set period. Commissioner Chefchovich said, "This idea appears to have been positively received by the Chinese side, and it seems that the first general permits are now being issued."

The EU expects that these general permits will help ease supply chain pressures for major industries within the bloc, such as the German automotive sector.

Previously, U.S. President Donald Trump and Chinese President Xi Jinping agreed to temporarily ease several trade regulatory measures, including rare earth export controls, during a summit held in Busan last October. While this agreement provided some relief for rare earth supplies, China maintained the rare earth export permit system that had been introduced in April.

Reuters also reported on December 2 that, following the summit between President Trump and President Xi, China began establishing a simplified rare earth export permit system centered on general permits, and that at least three Chinese rare earth magnet manufacturers have received these simplified export permits.