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China announced this week it will expedite export approvals for rare earth minerals to the European Union, signaling a potential thaw in trade relations as both sides navigate disputes over tariffs and industrial subsidies.
The Chinese Commerce Ministry said Saturday it would establish a "green channel" to accelerate approvals for qualified applications, responding to EU concerns about access to the critical minerals used in electronics, renewable energy systems and defense equipment.
"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 Chinese Commerce Ministry spokesperson said, according to the ministry readout.
The announcement follows high-level talks between Chinese Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic in Paris on Tuesday. Their discussions covered rare earth export controls alongside ongoing investigations affecting EU brandy exports and Chinese electric vehicle imports.
Wang called for reciprocal cooperation from Brussels, urging the bloc to "meet halfway and take effective measures to facilitate, safeguard and promote the compliant trade of high-tech products to China."
The rare earth overture comes as both sides work to resolve multiple trade disputes that have strained economic ties. China controls roughly 60% of global rare earth mining and 85% of processing capacity, making EU manufacturers vulnerable to supply disruptions.
On the brandy investigation, Beijing indicated progress toward a resolution. The Commerce Ministry spokesperson said French producers and industry associations had submitted price commitment applications, with China agreeing on key terms pending final review. A ruling is expected before July 5.
China launched the anti-dumping probe earlier this year, citing concerns over pricing practices by EU producers, in what many viewed as retaliation for European tariffs on Chinese electric vehicles.
The electric vehicle dispute also featured prominently in the Paris talks. The EU's anti-subsidy investigation into Chinese EV imports has resulted in higher tariffs, prompting Beijing to seek price commitment arrangements that could reduce trade barriers.
According to the Chinese spokesperson, both sides are approaching the end of their price commitment consultations, though some issues remain unresolved. The EU has proposed exploring "new technical paths," which Beijing is currently reviewing.
The diplomatic engagement reflects broader efforts by Brussels and Beijing to manage escalating trade tensions across multiple sectors, including electric vehicles, semiconductors and critical mineral supply chains, as competition intensifies between the world's largest economies.
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