China has enacted a new regulation, effective October 1, asserting state ownership over its rare-earth materials required in semiconductor production, reports Nikkei. This move aims to secure national and industrial interests, though outside of China the move is considered to be leverage in the ongoing trade war with the U.S.
The new regulation prohibits any individual or organization from unlawfully accessing or damaging rare-earth resources. We could interpret the rule as basically an explicit declaration of state ownership of important rare earth metals, such as gallium and germanium. Notably, the statement of state ownership was not part of the initial draft but was included in the final version to emphasize control over these strategic materials.
