Conflicts Over F-35 Due to Manufacturer's Ties with Chinese Metal Licenses
Hold Up on Export Licenses for Rare Earth Metals Threatens Tech Sector
China's dragging feet on approving export licenses for rare earth elements has everyone's knickers in a knot. As reported by Financial Times, this delay is causing a headache for the production of fighter jets and electric vehicles — not exactly favorite items on the wishlist, right?
Beijing's newfound control over rare earth elements export is a move that's under scrutiny amid the ongoing trade tension with the US, according to Bloomberg.
Wolfgang Niedermark, a big shot in the Executive Board of the Federation of German Industries (BDI), is sounding the alarm bells. He warns that the opportunity to save our production sectors from a massive hit is rapidly vanishing.
The report indicates that, after a prolonged wait, China's Ministry of Commerce has given the green light to several export licenses bound for Europe, but it's a sluggish process, nowhere near what we need to meet demand.
Remember the clashes within the US administration over the possibility of including certain Chinese chip producers on the sanctions list? Well, that's surfaced again.
In a surprising turn of events, China eased its export controls for US companies earlier. The 90-day reprieve [3] lets exporters apply for licenses during this time. Despite this breather, China's keeping a close eye on rare earth magnets and other crucial minerals, enforcing strict export controls [2][5].
In essence, these export license delays and restrictions pose a threat to both the defense and tech sectors, leading to production delays and increased costs. Companies are now scrambling to find alternative sources, investing in recycling, and designing products to minimize reliance on these critical materials [5].
The prolonged delay in approving export licenses for rare earth elements by China's Ministry of Commerce is causing significant concern within the technology sector, as it could lead to production delays and increased costs. Furthermore, the ongoing politics surrounding rare earth elements, particularly amid the trade tension with the US, is under intense scrutiny.
