by Laurie Chen and David Shepardson

PEKIN/WASHINGTON (Reuters)-China has issued export licenses to rare land suppliers of the three major American car manufacturers, we learned from two sources close to the file, while the restrictions imposed by Beijing on deliveries of these metals begin to disrupt the supply chains for several industrial sectors.

At least some of these authorizations are valid for six months, said the sources required anonymity, this information not being official. It is unclear that metals and what quantities are affected by this decision and if this initiative announces a relaxation of China on the issuance of export authorizations, a heavy procedure at the origin of bottlenecks according to industrial circles.

The Chinese decision in April to restrict the exports of a wide range of rare earths set the supply chains for car manufacturers, companies in the aerospace sector, semiconductor giants and military subcontractors around the world.

The overwhelming domination of China in the production of rare earths, considered essential to the ecological transition of industry, is increasingly perceived as an essential lever for Beijing in his trade war against the United States, triggered by President Donald Trump. China provides around 90% of rare earths worldwide.

The rare land suppliers of the three large automotive groups that are General Motors, Ford and Stellantis, owner of the American brand Jeep, obtained rare earth export licenses on Monday, said one of the sources.

Rare earths in the heart of the Trump-Xe interview

GM and Ford refused to express themselves on the subject. Stellantis said that he was working with his suppliers “to guarantee an effective authorization process” and that, so far, he had managed to “manage immediate concerns in terms of production without major disruption”.

The Chinese Ministry of Commerce did not immediately respond to a request for comments addressed by Fax.

Chinese control of the world’s world supplies has become one of Donald Trump’s main attacking angles of attack, which the American president accused of having violated a truce concluded in May on customs duties and reciprocal commercial restrictions between China and the United States.

Donald Trump and his Chinese counterpart Xi Jinping spoke for a long time on the phone on Thursday to try to flatten these commercial disputes. The American president declared after this discussion that “there should no longer be any questions concerning the complexity of rare land products”.

American automobile groups are already starting to feel the effects of Chinese restrictions. Ford thus suspended in May for a week the production of its SUV Explorer in its Chicago factory due to a shortage of rare land.

Export authorizations have already been given last week to suppliers of an American electronics company and then this week to suppliers of a company outside the automotive sector, said one of the sources by refusing to give the name of these companies.

“We must give the Chinese the benefit of the doubt that they are looking at all of this. It is up to them to prove that they do not make a weapon,” said the source.

(Report Laurie Chen to Beijing and David Shepardson in Washington, Bertrand Boucey, edited by Tangi Salaün)

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