China opens rare earth channel for EU in bid to calm rising tensions
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The approved rare earth export is aimed at easing trade tensions, as both sides navigate disputes over brandy, electric vehicles, and strategic supply chains.
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A crane cables swing by a construction site displaying an advertising banner showing a Communist Party flag, in the Central Business District, in Beijing, on Wednesday, May 8, 2024 (AP)
China has signaled a willingness to accelerate the approval process for rare earth mineral exports to the European Union, in what appears to be a strategic effort to ease mounting trade friction between Beijing and Brussels.
The move follows China's suspension of certain rare earth exports in April, a decision that raised alarms in European industry over access to critical materials vital for high-tech manufacturing and green energy initiatives.
"China attaches great importance to the EU's concerns and is willing to establish a green channel for qualified applications to speed up the approval process," a spokesperson for China's Commerce Ministry said, according to a Ministry statement released Saturday.
During a meeting held Tuesday in Paris, Chinese Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic discussed a range of trade-related issues, including export controls on rare earths, Chinese electric vehicles, and EU brandy exports.
Chinese Commerce Minister Wang Wentao held talks with EU Commissioner for Trade and Economic Security Maros Sefcovic on the sidelines of a #WorldTradeOrganization meeting in #Paris on Tuesday. pic.twitter.com/mLXEQAhTiL
— Consulate General of PR.China in Manchester (@ConsulateChnMan) June 4, 2025
Wang encouraged deeper cooperation between the two powers. "We hope the EU will meet halfway and take effective measures to facilitate, safeguard and promote the compliant trade of high-tech products to China," he stated.
Trade thaw
The rare earth initiative coincides with a broader effort by both sides to de-escalate trade tensions as they near key rulings. China's Commerce Ministry said it is reviewing new technical proposals put forward by the EU while also working to stabilize its trade relationship with Brussels amid intensifying competition over electric vehicles, semiconductors, and strategic supply chains.
The two sides also addressed China's anti-dumping investigation into EU brandy, which was launched earlier this year over concerns about pricing practices. According to the Commerce Ministry, French brandy producers and industry groups have submitted price commitment proposals.
China has reportedly reached a consensus with them on essential terms, with a final ruling expected before July 5 pending review. Major French exporters such as Hennessy and Martell are among those affected.
Read more: China weighs massive Airbus aircraft order ahead of EU leaders visit
Tariff tensions
In parallel, discussions focused on the EU's anti-subsidy investigation targeting Chinese electric vehicles, an inquiry that has already led to the imposition of provisional tariffs on imports from China. Talks on price commitments are reportedly nearing completion, though some issues remain unresolved.
China has indicated it is open to non-tariff solutions such as setting minimum prices, while the EU has proposed "new technical paths" that Beijing is now evaluating.
Despite Beijing's outreach, European industry leaders continue to express concerns about delays and a lack of transparency in China's export licensing process. Meanwhile, both sides are under pressure to secure critical mineral supply chains and prevent further escalation in a trade landscape increasingly shaped by geopolitical rivalry.
