China's Ministry of Commerce (MOFCOM) announced revisions to a list of bulk commodities whose imports and exports should be reported, for the first time putting rare earths on the list. According to a circular posted on the website of MOFCOM, traders need to immediately report the shipment, amount and time of exports of bulk commodities that are on the list. The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters is responsible for collecting and analyzing the data, which will be reported to MOFCOM. Surveys and statistics will contribute to understand trends in the trade of bulk commodities and guide traders to conduct foreign trade in an orderly fashion to avoid risks and ensure stable foreign trade, according to the circular. “The move will provide comprehensive export data about rare earths, including volume and price, so as to ensure the healthy and stable development of these valuable resources in the digital era,” Wang Guoqing, Research Director at the Beijing Lange Steel Information Research Center, told the Global Times.
China's State Council stressed high-quality development of the rare-earth industry at an executive meeting on October 3. Noting that rare earths are strategic mineral resources, it called for enhanced efforts to coordinate the exploration, development, utilization and standardized management of rare earths, to promote the development and application of a new generation of green, efficient mining and related technologies. Efforts should also be made to crack down on illegal mining and environmental damage, while promoting intelligent and green development of the country's rare earths, according to the meeting. MOFCOM's move “came in response to the high-quality development of the rare-earth sector as required by the State Council, which is also aimed at ensuring energy and national security,” Wu Chenhui, an independent industry analyst who closely follows the rare-earth sector, told the Global Times. Wu added that China will roll out more detailed policies regarding rare-earth development and usage.
Rare earths, dubbed "industrial gold," comprise a group of 17 chemical elements used in a wide range of products from high-tech consumer electronics to weaponry. China provides more than 85% of the world's rare earths and is home to about two-thirds of the global supply of scarce metals and minerals, according to a report by the U.S. think tank the Center for Strategic and International Studies (CSIS) in 2021. Although China has large rare-earth reserves, the development of the industry remains in its early stages, resulting in prices being pushed down to a relatively low level. “Some rare-earth minerals have been traded for 'cabbage prices'” said Wang, noting that MOFCOM's move will strengthen regulations of rare-earth exports, the Global Times reports.
The South China Morning Post adds that importers of crude oil, iron ore, copper ore concentrates and potash fertilizer have also been asked to report orders and shipments. The new requirements, an update on the commodity reporting regulations released by the National Bureau of Statistics (NBS) in 2022, will last for two years starting from October 31. Previously, 14 imported items fell under the reporting mechanism, including soybeans, rapeseed oil, formula milk powder, pork, beef and sugar. Rare earths are the only item on the export reporting list. Earlier China also announced export restrictions on some graphite, gallium and germanium products, which are widely used in chips and computers.
