Rare earths: China has taken a big and important decision regarding ‘rare earth metals’, which are considered the backbone of modern technology. On Friday, China has opened the door of its safe a little. It has officially announced that it will allow export of rare earth metals for civilian use. This is a big sigh of relief for all those countries including India, who were troubled by China’s strictness and export restrictions for a long time.
doors open for common use only
Chinese Foreign Ministry spokesperson Guo Jiakun has made it clear that this exemption is not without conditions. China argues that its export control system is not designed to target any one country, but it works in accordance with the law. If the rare earth will be used for civilian purposes and the exporters will follow all the rules, then the government will give approval on time.
But, there is a big problem here. China has bluntly said that if there is a possibility of these metals being used in defense products, then export permission will not be given at all. Actually, medium and heavy rare earths come in ‘dual use’ category, that is, they can be used for both military and civilian purposes. Citing ‘global peace’ and regional stability, China is in no mood to loosen its grip on the defense sector.
India’s electric vehicles will gain momentum
This decision is no less than a lifesaver for India. Our automobile sector and especially the rapidly growing Electric Vehicle (EV) market was struggling for the supply of these metals for a long time. India did not sit idly by, rather it expressed its views on every possible platform. Recently, in the Foreign Ministry level talks held on December 12, New Delhi had raised this issue very strongly with China.
India had made it clear that the pending issues related to export control should be resolved soon. Now this softening of China will provide immediate relief to the Indian industry i.e. in the short term, but the challenge of dependence in defense and strategic sectors still remains the same. Apart from this, India has also placed before China the demand for export of heavy boring machines along with rare earths.
China’s control over the pulse of the world
China alone controls about 70 percent of the mining of rare earths worldwide and about 90 percent of its processing. Big countries like America, European Union and India are dependent on China for their needs. During the tariff war with America, China had imposed strict export controls on these metals, which are now being loosened a bit. Recently, this softening of China’s stance has been seen after the deal related to semiconductor chips with America.
Read this also- Is India becoming the next superpower in rare earth? Government made a plan of Rs 7280 crore
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