Beijing [China], June 12: China is imposing a six-month limit on rare earth export licenses for U.S. automakers and factories, The Wall Street Journal reported on June 11, citing people familiar with the matter.
China's agreement to temporarily restore rare earth export licenses was one of the important breakthroughs in the second round of US-China trade negotiations that ended on June 10 in London, UK.
However, the six-month limit shows that Beijing still retains the means to retaliate if trade tensions flare up again, while bringing uncertainty to US industries.
To persuade China to temporarily relax its controls on rare earths, US negotiators agreed to ease some recent restrictions on key commodities sold to China.
These include aircraft engines and related components, as well as ethane, a byproduct of oil and gas extraction that plays a key role in plastics production, according to sources familiar with the matter .
The White House and Beijing have yet to release details of the framework for action agreed upon in London and the first round in Geneva, Switzerland, in May. The two sides are still finalizing the specifics of the agreement.
As part of the trade framework, temporary rare earth export licenses will be approved by China, mainly for materials used in the production of electric cars, power turbines, consumer electronics and military equipment, US newspaper sources revealed.
Source: Thanh Nien Newspaper
