Source : NEW INDIAN EXPRESS NEWS
China shows signs of easing up on rare earths
One area where China holds the upper hand is in the mining and processing of rare earths. They are crucial for not only autos but also a range of other products from robots to military equipment.
The Chinese government started requiring producers to obtain a license to export seven rare earth elements in April. Resulting shortages sent automakers worldwide into a tizzy. As stockpiles ran down, some worried they would have to halt production.
Trump, without mentioning rare earths specifically, took to social media to attack China.
“The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” Trump posted on May 30.
The Chinese government indicated Saturday that it is addressing the concerns, which have come from European companies as well. A Commerce Ministry statement said it had granted some approvals and “will continue to strengthen the approval of applications that comply with regulations.”
The scramble to resolve the rare earth issue shows that China has a strong card to play if it wants to strike back against tariffs or other measures.
SOURCE :- NEW INDIAN EXPRESS
