China rarely makes the so -called rare earths for European car manufacturers in the word: the recently imposed export restrictions are increasingly being beaten by suppliers.
Some production facilities have already been closed, the association of European car suppliers CLA explained. Hundreds of companies have submitted applications for export since the beginning of April. So far, only a quarter had been approved.
BMW explained that parts of the supply chains were influenced by the cuts by China. However, your own production is normal.
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In some rejected applications, reference was made to a high degree of procedural reasons, CLA said. The procedure varies from province to province. The transfer of sensitive data is also required. The problem can become even greater in the coming three to four weeks if the inventory has been used up.
China had decided in April to expose the export of a whole series of metals from the rare earths and connected magnets. These are required, among other things, by suppliers of the car, aviation and armored industry.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
