Berlin (Reuters) – Several factories and production lines of European automotive equipment manufacturers have had to stop their activities due to a shortage of rare land due to restrictions imposed since April by China for exports of these precious metals, alerted Wednesday the European Association of Automobile Suppliers (CLEPA).
Of the hundreds of export license applications submitted since the beginning of April by the equipment manufacturers, only a quarter have been granted, said the CLEPA, adding that certain requests are rejected for reasons above all procedures.
“The procedures seem to vary according to the provinces and in several cases, sensitive intellectual property information has been required,” added the association, according to which other production sites could be assigned in the next three or four weeks as stocks are reduced.
The Chinese decision to suspend the exports of rare land, in reaction to the tariff offensive of Donald Trump, disturbs the supply chains of car manufacturers and aeronautics, as well as the sectors of semiconductor or defense.
Several employers’ organizations in Germany, India and even in the United States are pressing their political leaders to act to negotiate with Beijing a rapid solution.
(Written by Victoria Waldersee, Jean-Stéphane Brosse for the , edited by Blandine Hénault)
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