Investing.com -- China has launched a tracking system for its rare earth magnet industry, according a Reuters report on Wednesday. The system, which became operational last week, mandates producers to submit additional information online, including trading volumes and customer names.
China, the world’s leading supplier and exporter of rare earth magnets, imposed export restrictions on seven medium to heavy rare earth elements and several magnets in early April. Exporters now need to secure licenses to carry out their operations.
The new regulations have caused delays in approvals, disrupting supply chains for various industries including automakers and semiconductor companies. As a result, global automakers have already started halting some production lines due to dwindling reserves.
The plans to create a tracking system were announced by Beijing in June of last year, but there was no further mention of the system until last week.
