European Commission Cautious as China Plans Key Tech Export Controls Easing

The European Commission remains cautious about China's recent announcement to ease export controls on rare earths and chips, despite agreements reached with the US and reassurances that these measures will extend to the EU. Supply chain disruptions have notably impacted the EU automotive industry following the Dutch government's takeover of the Chinese-owned chipmaker Nexperia due to governance concerns, prompting China to impose export restrictions. High-level discussions between Chinese and EU officials, including an upgraded export control dialogue held in Brussels, focused on ensuring the stability and smooth flow of critical industrial supply chains. Both sides committed to maintaining ongoing communication and cooperation to address trade frictions and mitigate supply risks, particularly in strategic sectors reliant on rare-earth materials and semiconductors. EU Trade Commissioner Maros Sefcovic confirmed China's suspension of expanded export controls applies to the EU and emphasized continued engagement to improve policy implementation. These diplomatic efforts reflect wider attempts to ease tensions amid global sensitivity to export controls and geopolitical dynamics.