EU, China Agree on Rare Earth Export Mechanism

At the 25th EU-China summit in Beijing, the European Union and China reached a tentative agreement to upgrade mechanisms for stable export of rare earth elements from China to the EU, seeking to address recent Chinese export restrictions and related supply bottlenecks. The agreement aims to increase transparency in export licensing and support critical EU industries, though specific operational details remain unclear. European Commission President Ursula von der Leyen stressed the importance of reliable access to these materials and called on China to be a dependable trading partner. Despite the progress, tensions remain over the EU’s significant trade deficit with China, ongoing tariff disputes, and wider geopolitical issues. The summit also featured a shared commitment to environmental cooperation and multilateralism. Nevertheless, trade imbalances and market access continue to be major points of contention.