EU and China make progress on plan to unlock rare earth exports, says von der Leyen.
The European bloc has proposed a mechanism to avoid bottlenecks in licensing, but a final agreement has not yet been reached between the parties.
247 - The European Union and China have taken an important step towards resolving impasses over exports of rare earths and permanent magnets, with the announcement of a plan to create a new rapid response mechanism for trade bottlenecks. The information was released by the President of the European Commission, Ursula von der Leyen, after a summit held this Thursday (24) in Beijing. Despite the progress, the parties have not yet formalized a definitive agreement.
“We agreed – and this is new – to have an enhanced export supply mechanism. In other words, if there are bottlenecks, this support mechanism can immediately check and resolve the problem or issue at hand,” von der Leyen stated, describing the proposal as a “pragmatic step.”
The issue of rare earth elements has become a major point of friction in the trade relationship between China and the European Union. Tensions escalated after Beijing's decision in April to impose licensing requirements for the export of these strategic materials, in response to US tariffs. European companies were directly impacted.
Von der Leyen acknowledged China's efforts to expedite the issuance of licenses and stated that the new mechanism would bring "more transparency regarding the speed of granting" and allow for direct mediation in case of delays. However, according to diplomatic sources, the proposal still lacks a clear operational framework and does not represent the structural solution expected by Brussels.
Brussels is pushing for a trade balance.
During the summit, the President of the European Commission also criticized the excess of subsidized Chinese production in sectors such as electric vehicles, batteries, steel, and solar panels. "Production does not match domestic demand, and the surplus goes to other markets," she said.
Von der Leyen warned that, without correcting these imbalances, "it will be difficult to maintain the current level of openness" of the European market. According to her, the Chinese government recognized the problem, treating it as a "regression," and showed a willingness to further stimulate domestic consumption.
Furthermore, Brussels demanded an end to retaliatory measures against European exports of cognac, pork, and dairy products—seen as a response to the tariffs imposed by the EU on Chinese electric cars.
Xi avoids confrontation and emphasizes partnership.
Chinese President Xi Jinping, for his part, avoided directly responding to the criticism and reaffirmed the importance of the partnership with Europe. "China and Europe are 'major players' in the international community," he said, advocating for more dialogue, trust, and cooperation. According to the Chinese government, Xi stated that "the challenges currently facing Europe do not originate from China."
He also stressed that there are no "fundamental conflicts of interest" between the two sides and that cooperation continues to overcome differences.
Climate declaration and geopolitical divergences
At another point in the meeting, the parties signed a joint declaration on climate change in preparation for COP30, which will be hosted by Brazil. However, analysts pointed out that the document did not bring new commitments or more ambitious goals.
According to Byford Tsang of the European Council on Foreign Relations, "the text contains only vague promises of future commitments, in contrast to the 2021 joint declaration, when Beijing at least signaled a willingness to reduce coal use."
In the geopolitical field, the Europeans pressured Beijing to use its influence with Russia. "We expressed our expectations that China would help to get Russia to accept a ceasefire and participate in peace negotiations," said von der Leyen.
Disagreements even over the shape of the dome.
The event, which marked 50 years of diplomatic relations between the EU and China, also revealed formal diplomatic friction: while the Europeans considered the morning meeting with Xi Jinping as the start of the summit, the Chinese classified the meeting as merely bilateral—considering the formal summit to be only the one held with Premier Li Qiang in the afternoon. This disagreement is believed to be one of the reasons Xi did not travel to Brussels.
Despite the differences, the President of the European Council, Antonio Costa, highlighted that the willingness to maintain dialogue is a positive sign. "It is important that both sides remain engaged in frank conversations to build a viable model of cooperation for the next 50 years," he stated.
(With information from the SCMP newspaper)
