China approved major regulations on the mining, smelting, and trade of rare earth, a critical material used to make magnets in electric vehicles and consumer electronics, on Saturday, with an aim of driving the high-quality development of the rare earth industry.
The regulation, issued by the State Council, the nation’s Cabinet, said that China will encourage and support the research, development, and application of new technologies, products, materials, and equipment in the rare earth industry.
The Chinese government will make a unified planning for the development of the sector and industry and information technology authorities will be responsible for such a plan. The new regulation will take effect on October 1.
According to the Association Of China Rare Earth Industry, the country has in recent years become the world’s dominant producer of rare earth, accounting for nearly 90 percent of global refined output.
The regulation also noted that rare earth belongs to the country and no organization or individual is allowed to claim them, and any illegal activity involving the mineral’s output will be punished.
A rare earth product traceability information system will also be established, according to the regulation.
Companies related to rare earth mining, smelting and separation, and the export of rare earth products, should establish a product flow recording system, it added.