While a few licences have since been granted to exporters of rare earth magnets, used in the semiconductor, auto and defence industries, the complex licensing process can take months, and is already causing confusion at customs.

On Wednesday, the official China Daily said China could relax the controls for the supply chains of Chinese and European semiconductor companies, citing a single source.

The rare earth controls were discussed at a meeting between Chinese and European semiconductor firms hosted by China’s commerce ministry on Tuesday, the paper said, where Chinese officials explained the application process.

“The meeting provided European Chamber members the opportunity to express in person the urgent need to accelerate approval processes, to ensure the stability of their supply chains,” said Jens Esklund, president of the European Union Chamber of Commerce in China.

“This is imperative, as many European production lines will come to a halt very soon due to the shortage of crucial inputs,” he added in a statement to Reuters.