From the Wall Street Journal via India's Mint, November 11:
China plans to ease the flow of rare earths and other restricted materials to the U.S. by designing a system that will exclude companies with ties to the U.S. military while fast-tracking export approvals for other firms, according to people familiar with the plan.
The “validated end-user" system, or VEU, would enable Chinese leader Xi Jinping to follow through on a pledge to President Trump to facilitate the export of such materials while ensuring that they don’t end up with U.S. military suppliers, a core concern for China, according to the people familiar with the plan.
If strictly implemented, the system could make importing certain Chinese materials more difficult for automotive and aerospace companies that have both civilian and defense clients. Beijing’s plan could still change and its licensing system wouldn’t be certain until it is implemented, the people said.
China’s Ministry of Commerce didn’t respond to a request for comment.
Rare-earth magnets and other restricted materials are used widely in civilian goods such as electric vehicles and passenger jets, but are also needed in jet fighters, submarines and attack drones.
The VEU mechanism that Beijing is considering is modeled on U.S. laws and procedures, as is much of Beijing’s export-control architecture.
Under the American version of the VEU system, which has been active since 2007, certain Chinese companies are cleared to buy sensitive goods under a general authorization—essentially a simplified export-approval mechanism—instead of needing individual licenses for each purchase.
This makes it easier to import controlled goods such as chemicals or chip-making equipment, but requires companies to put up with U.S. government inspections of their facilities, among other steps, to verify compliance with the program....
....MUCH MORE
I should hatch a plan.
