The European Union has reached an agreement with China to stabilize the flow of rare earth materials and products that are vital for high-tech and military industries, officials said Tuesday.
According to The Associated Press, EU trade commissioner Maroš Šefčovič met with Chinese Commerce Minister Wang Wentao in Brussels on Friday to discuss Beijing’s export controls on rare earths issued earlier this year, along with European regulations on semiconductor sales, according to European Commission spokesperson Olof Gill.
Europe, like the U.S., runs a large trade deficit with China — about 300 billion euros ($345 billion) in 2023 — and depends heavily on Chinese rare earths for products such as magnets used in vehicles and appliances.
Gill said the EU welcomed China’s recent 12-month suspension of rare earth export controls and called for a new, stable trading system for the critical materials. Both sides are now working on an export licensing system to help maintain a steady supply of rare earths to Europe.
“This is an appropriate and responsible step in the context of ensuring stable global trade flows in a critically important area,” Gill said.
Šefčovič confirmed continued talks between Brussels and Beijing, posting on X that “both sides reaffirmed commitment to continue engagement on improving the implementation of export control policies.”
China is the EU’s second-largest trading partner after the United States, with trade between the two economies totaling about 2.3 billion euros ($2.7 billion) daily.
Both sides have emphasized their shared interest in maintaining stable trade relations and pursuing mutual climate goals.
