China has implemented a new tracking system for rare earths and critical minerals exports, coinciding with increasingly tight restrictions on raw materials as part of its tit-for-tat trade war with the United States.
The initiative, which took effect last week, requires Chinese producers to submit detailed online information about the transactions, including trading volumes and client identities, according to industry sources.
The move comes after China, the dominant global supplier of rare earths, imposed export restrictions in early April on several medium-to-heavy rare earth elements and associated magnets.
Measures that mandate exporters to obtain specific licenses, a process that already disrupts global supply chains.
Delays in securing these approvals have impacted supply chains across the world - especially for car and semiconductor manufacturers - industries that depend on China's output.
Reports indicate that some automakers are experiencing production halts as their existing reserves deplete.
Chinese state media recently reported a potential easing of rare earth export curbs for Chinese and European semiconductor firms, however that has yet to materialise.
This follows discussions between industry representatives and the Ministry of Commerce, where the issue of shortages was raised.
VDA head Hildegard Mueller told Reuters that China has issued some permits to a handful of rare earth producers - including supplies to Volkswagen - but not enough to ensure the adequate supply of components needed to allow smooth production.
"If the situation is not changed quickly, production delays and even production outages can no longer be ruled out," Mueller said.
The evolving situation is expected to be a significant talking point in an upcoming conversation between US President Donald Trump and Chinese President Xi Jinping, confirmed by White House spokesperson Karoline Leavitt.
President Trump has previously suggested that China's slow pace in relaxing these critical mineral export controls could be seen as a breach of a recent agreement.
