China Looking to 'Shorten' License Review Times Ahead of New Rare Earth Controls
China is looking to shorten its export license application review times, and potentially issue exemptions, as it approaches the Dec. 1 effective date of its new rules to restrict overseas exports that contain certain levels of Chinese-origin material (see 2510090021), a Commerce Ministry spokesperson said Oct. 16 during a press conference.
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A reporter asked how China would respond to European companies that are concerned about having to halt production while awaiting Chinese approvals of rare earth export applications. According to an unofficial translation, the ministry spokesperson said China is in the “process of implementing” a “green channel” to expedite certain license applications. Beijing "will continue to optimize the licensing process, shorten the review time, and actively consider applying facilitation measures such as general licenses and license exemptions to effectively promote compliant trade.”
The spokesperson also objected to comments made this week by U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent, who said the new China export controls would have damaging effects on global supply chains (see 2510150017). “The U.S.'s interpretation seriously distorts and exaggerates China's measures, deliberately causing unnecessary misunderstanding and panic,” the spokesperson said, adding that U.S. has in place similar controls under its Foreign Direct Product Rule restrictions, which place export license requirements on certain foreign-made items that are made with U.S.-origin software or technology.
“In reality, the U.S.'s extraterritorial jurisdiction is a long-standing one, dating back decades,” the spokesperson said. “The U.S.'s claims are based on its own judgment of others, which only proves that the U.S. itself is increasingly generalizing national security. The security and stability of the global supply chain requires the joint efforts of all countries, including the U.S.”
China also criticized the U.S. Section 301 investigation of China’s maritime, logistics and shipbuilding sectors (see 2506100023). Earlier this week, Beijing announced it would be collecting "special port fees" for ships built in the U.S., flying a U.S. flag and owned or operated by U.S. entities, as well as others with ties to the U.S. (see 2506100023)
Those fees are “passive defensive actions and are necessary to maintain a fair competitive environment in the international shipping and shipbuilding markets,” the spokesperson said. “China hopes the U.S. will recognize its own wrongdoings, work with China halfway, and return to the right track of dialogue and consultation.”