EU trade chief says Brussels and China to keep dialogue on critical raw materials

Lailuma Sadid
Credit: bloomberg

Brussels (Brussels Morning Newspaper) – The European Union and China will keep discussing export control policies, according to the European Commission’s trade chief, who made the statement Saturday, following a meeting between EU and Chinese officials in Brussels.

“China confirmed that the suspension of the October export controls applies to the EU. Both sides reaffirmed commitment to continue engagement on improving the implementation of export control policies,”

EU Trade Commissioner Maros Sefcovic said in a post on X.

The officials met to ease trade tensions, especially regarding China’s plans to expand controls on rare earth exports. Beijing has agreed to halt that expansion for a year.

The two sides were also expected to discuss Nexperia, the Chinese-owned computer chipmaker that the Dutch government took control of last month, in a dispute that could disrupt the semiconductor supply to European carmakers.

What did Antonio Costa say about China’s global influence?

A few days ago, European Council President Antonio Costa also announced that senior Chinese officials are planning to visit Brussels in the upcoming weeks to talk about Beijing’s export restrictions on rare earths, Reuters reported.

“We are very concerned about the trade relationship with China, especially the recent measures that China adopted regarding the export control of critical raw materials,”

Costa told selected media.

“A high-level delegation from China is going to Brussels in the coming weeks, and we hope to address these in the proper way.”

Costa stated that China is also the country best positioned to bring an end to the war between Ukraine and Russia, emphasising that Beijing underestimates its own influence over Moscow.

Why is the EU worried about China’s rare earth policies?

China broadened its rare earths export controls earlier in October, including five new rare earths, and added scrutiny on users in the semiconductor sector. Beijing also added dozens of types of refining technology to its controlled technology list, and these rules will require foreign rare earths producers who utilise Chinese materials to be compliant with them.

How dominant is China in the global rare earth market?

China generates over 90% of the processed rare earths and rare earth magnets in the global market. The 17 rare earths are essential components in all kinds of products, from electric vehicles to aircraft engines and military radars. 

Exports of 12 of the 17 rare earths are now subject to restrictions by the Ministry of Industry and Information Technology, as the ministry added five more rare earths: holmium, erbium, thulium, europium, and ytterbium, along with certain related materials. 

Additionally, foreign companies producing some of the rare earths and magnets on this list will now be required to obtain a Chinese export license even if the final product contains, or is manufactured in, Chinese equipment or materials, unless the transaction occurs entirely outside of China, i.e,. other than papers. This includes any related products, even if no Chinese companies are involved in the transaction.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Lailuma Sadid is a former diplomat in the Islamic Republic of Afghanistan Embassy to the kingdom of Belgium, in charge of NATO. She attended the NATO Training courses and speakers for the events at NATO H-Q in Brussels, and also in Nederland, Germany, Estonia, and Azerbaijan. Sadid has is a former Political Reporter for Pajhwok News Agency, covering the London, Conference in 2006 and Lisbon summit in 2010.
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