China's Strategic Shift on Rare Earth Exports

China is addressing Germany's concerns by implementing a general licensing system for rare earths exports and offering export licence exemptions for some chips. These issues were discussed during a meeting between China's commerce minister and Germany's foreign minister in Beijing.

In a significant policy shift, China is addressing Germany's export control concerns by implementing a new general licensing system for rare earths. This move aims to regulate and streamline exports, potentially easing tensions and fostering cooperation between the two nations.

During a meeting in Beijing, Chinese Commerce Minister Wang Wentao informed German Foreign Minister Johann Wadephul about the new measures. According to a statement from the Chinese ministry, these measures include specific export licence exemptions that apply to certain chips associated with Nexperia, a semiconductor company.

The dialogue reflects China's strategic approach to balancing international trade relations while maintaining its economic interests. Both countries are keen on ensuring a stable supply of critical materials essential for various industries, highlighting the significance of rare earths in global supply chains.

(With inputs from agencies.)