Beijing builds out REE traceability system

Beijing is scaling up its rare earth (REE) traceability system.

On Friday, the industry ministry (MIIT), macro planner (NDRC), and natural resources ministry (MNR) published interim measures for REE management.

• The measures came into effect on July 28 – but have only just been made public.

The measures task Chinese REE producers with establishing a "rare earth product flow record system,” which will feed into MIIT's broader industrial traceability system.

• Companies are given explicit responsibility for network and data security – no small deal given the sensitivities around mineral resource data.

The measures apply to all REE processing in China.

• That includes materials extracted outside of China and imported for smelting and separation – such as heavy REE-rich ionic clays from Myanmar, and ores extracted from the US’s Mountain Pass and other global sites.

Get smart: The company-level record system will give regulators a clearer view of production flows, making it harder for companies to fudge the numbers.

• That should sharpen Beijing’s ability to spot smuggling – a problem that persists despite decades of crackdowns.

The bigger picture: Greater production chain visibility will sharpen Beijing’s ability to steer economic planning and maximize the bite of export controls.

• Expect the playbook to extend to other sensitive commodities.