The Chinese government has decided to ease export curbs affecting companies that trade in rare earth metals and goods based on these resources. The change of policy was signaled by state media, reports Reuters. However, this change is only being implemented to the benefit of Chinese and European semiconductor companies, whose supply chains have been adversely impacted by the curbs that were introduced in April. Semiconductor players based in countries like the U.S., Taiwan, and South Korea aren’t going to directly benefit from this change.
Since China implemented the new curbs, only a few licenses have been granted for those wishing to export rare earth magnets, for example. The complex process to export these vital materials for certain semiconductor, auto, and defense production processes is known to take months. Moreover, there has been confusion at customs due to the freshness of the shift in policy. Organizations need time to adapt and get used to new rules.
