China to keep U.S. military from getting its rare-earth magnets

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.

- Jon Emont & Raffaele Huang

Beijing considers 'validated end-user' system to fast-track certain export licenses.

(AFP)

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.

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.