Highlights

• JL MAG Rare-Earth received export licenses to ship rare earth-based products to the US, Europe, and Southeast Asia.
• China maintains strategic control over rare earth exports through a Ministry of Commerce approval process.
• The export license framework represents a short-term de-escalation while Beijing retains significant geopolitical leverage.

Just days after a tentative trade framework was reached in London between U.S. and Chinese officials, Chinese magnet manufacturer JL MAG Rare-Earth (opens in a new tab) (300748.SZ) confirmed it has received export licenses to ship rare earth-based products—including magnets, motor rotors, and related components—to markets in the United States, Europe, and Southeast Asia.

The announcement, made via the Shenzhen Stock Exchange’ (opens in a new tab)s investor relations platform, signals partial relief for strained global supply chains, particularly in automotive, aerospace, and defense sectors, which depend on neodymium-iron-boron (NdFeB) magnets for electric motors, guidance systems, and advanced manufacturing_. Reuters also issued a report.

However, observers caution that this is not a full reversal of China’s hard-line stance. In April, Beijing officially placed key rare earths and finished magnets under export control, requiring approval from the Ministry of Commerce for outbound shipments. JL MAG’s approval is the first significant signal that applications-of which thousands are reportedly pending—are being processed “in succession.” No timeline was disclosed for the remaining applicants.

Another Chinese firm, Innuovo Technology (000795.SZ), acknowledged receiving a “small number” of licenses but declined to specify destinations, suggesting continued discretion in approvals. The Ministry of Commerce, which oversees the licensing process, remains a bottleneck with significant geopolitical implications.

The timing of JL MAG’s announcement—immediately following Secretary of Commerce Howard Lutnick’s statement that the U.S.-China agreement would “resolve” rare earths restrictions—suggests a political calibration rather than a policy shift. Shares of JL MAG surged 7.9% following the news.

Critically, the export license framework leaves intact Beijing’s power to throttle or accelerate approvals based on trade or diplomatic considerations. Despite the optics of concession, the system functions as a state-controlled valve—a fact not lost on Western manufacturers or defense planners.

Final Thoughts—Don’t Forget

While the export licenses signal short-term de-escalation, control remains firmly in Beijing’s hands. Until the West develops vertically integrated rare earth and magnet production capacity, it remains exposed to strategic bottlenecks, where access can shift with a signature.