China Creates Rare Earth Green Channel to Ease EU, US Auto Supply

China's Ministry of Commerce has announced the creation of a "green channel" to expedite export license approvals for eligible European Union firms, aiming to ease supply chain pressures amid concerns over rare earth element shortages critical to the automotive industry. This move follows trade discussions between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic and includes granting rare earth licenses to suppliers of U.S. automakers General Motors, Ford, and Stellantis. The export restrictions imposed by China in April, in response to U.S. tariffs under President Donald Trump's administration, had raised fears of disruptions in both combustion engine and electric vehicle production. While the "green channel" signals a willingness by China to maintain its key supplier role, industry experts caution that the bureaucratic process remains complex and it is unclear if all companies will benefit equally from the fast-track system. European and U.S. automakers are encouraged to pursue supply chain diversification and invest in alternative technologies to reduce reliance on Chinese rare earth processing. The situation underscores the strategic challenges posed by China's dominance in rare earth elements and the broader trade tensions impacting global manufacturing.