China says reviewing export licenses after US eases chip tech controls

Published 04/07/2025, 05:08
Updated 04/07/2025, 05:14
© Reuters

Investing.com-- China’s Ministry of Commerce said on Friday that it was reviewing export licenses for local businesses, and acknowledged that the U.S. had lifted some restrictions on chip technology exports to the country. 

The commerce ministry said it was reviewing applications for export licenses of controlled items, which include rare earths and related magnets, of which Beijing is the world’s biggest producer. 

The statement comes after the U.S. on Thursday lifted recent restrictions on the export of chip design software and technology to the U.S., which Beijing welcomed.

The commerce ministry had in late-June issued new export licenses to three of China’s biggest rare earth producers, reportedly in accordance with a framework trade deal between Washington and Beijing reached in May. 

The commerce ministry said on Friday that it was working to further implement the outcomes of the May deal, and welcomed further cooperation with Washington. 

Reuters reported on Friday that the U.S. had also lifted its export ban on American-made jet engine components and technology to China. 

China had used its rare earth dominance as a major bargaining chip in trade negotiations with the U.S., and had slashed its exports of the material amid a bitter trade war with Washington earlier this year.

But the two agreed to greatly reduce their respective trade tariffs in May, and announced a framework trade agreement in June. 

Washington’s chip control measures, which were tightened under President Donald Trump, were a major point of contention for Beijing. 

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