German Focus: China Cuts Exports of Tungsten and Rare Earth

Per the report of a German Media report, China is about to cut its exports of tungsten, rare earth, and other vital materials. "After the food supply issues, industrial raw materials are also facing a shortage!" Focus, a German-language news magazine published by Hubert Burda Media Germany, said on April 9 that a report released by the German Raw Materials Administration that China, as an important supplier of industrial raw materials in the world, is changing its strategy and preparing for large-scale reduce of raw material exports.

According to the report, the Chinese government is considering changing the original raw material export policy, and crucial raw materials would be used more in domestic industrial production for manufacturing higher quality products. For raw materials such as rare earth, magnesium, and tungsten, domestic demand in China is increasing substantially. At the same time, from 2016 to 2020, Chinese demand for cobalt, lithium, and other raw materials widely used in high-tech industries has increased by more than 10%.

"The EU classifies 27 kinds of raw materials as 'crucial raw materials', and China is the most important producer of 17 kinds of raw materials." According to the German Raw Materials Administration, Chinese output accounts for over 80% of the magnesium required by the German automotive industry and the computer industry. Prior to this, the country had reduced the export volume of some metal raw materials.

German media said the country has tightened exports of important raw materials such as tungsten and rare earths. The report believes that the Chinese new policy means that industrial countries such as Germany face a lack of raw materials, and the production of high-quality materials and industrial products is more competitive.

However, the report also pointed out that the Chinese tightening of exports of important raw materials such as tungsten and rare earths is also related to the implementation of higher environmental standards. China hopes to reduce the heavily polluting mining industry.

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