(Yicai) Aug. 22 -- China has issued new regulations to reinforce management of the mining, smelting, and separation of critical rare earths, as well as their export.

The country’s rare earth producers will have to set up product tracking systems and upload product flow data to a national traceability platform every month, the Ministry of Industry and Information Technology announced on its website today. The new rules also stipulate that imports of raw materials will be included in the existing quota system for rare earths.

Rare earths are a group of 17 metallic elements with distinctive chemical, magnetic, and optical properties, critical for high-tech and green technologies, including smartphones, electric vehicles, and wind turbines. China accounts for the bulk of the world’s supply and processing capacity of these materials.

The new rules mark a further improvement in China’s regulatory framework for the rare earth sector, the ministry noted.

They were jointly released by the MIIT, National Development and Reform Commission, the country’s state planner, and the Ministry of Natural Resources, which will coordinate to control the yearly aggregate production of rare earths.

The MIIT and the Ministry of Natural Resources will also stipulate which companies are qualified to engage in rare earth production, and all other firms will be prohibited from doing so. Approved companies must set up systems to record where their products go and for what purpose, and the data must be filed to the national tracking system by the 10th of each month.

Local authorities will also be involved in ensuring the new regulations are observed, and will impose penalties for any violations, including potential restrictions on future production.

Editor: Tom Litting