China Commits to Continued Rare Earth Exports to Europe Amid U.S. Trade Deal Uncertainty
- China will maintain rare earth exports to Europe regardless of U.S. trade deal developments.
- The Chinese Commerce Ministry emphasizes approval of rare earth licenses to Europe.
- Trade tensions ease as EU and China discuss future relations in Brussels.
BEIJING — China plans to continue its exports of rare earth materials to Europe, irrespective of whether the U.S. trade agreement with Beijing is extended beyond January. He Yadong, spokesperson for China’s Commerce Ministry, affirmed this commitment to CNBC during a Thursday inquiry about the impending U.S. deadline.
In October 2022, Beijing imposed stricter regulations on the export of rare earths, tightening restrictions even on goods containing as little as 0.1% of China-sourced rare earth elements. This decision followed a new U.S. regulation that expanded a blacklist to encompass majority-owned subsidiaries of Chinese firms. This move has the potential to impact approximately 20,000 Chinese entities.
However, both the United States and China agreed to a one-year suspension of these measures after a meeting in late October 2025 between Chinese President Xi Jinping and U.S. President Donald Trump. U.S. Treasury Secretary Scott Bessent stated that this truce was further extended by two months, pushing the deadline to January.
Recent meetings between European Trade Commissioner Maroš Sefčovič and Chinese Commerce Minister Wang Wentao in Beijing resulted in a reduction of trade tensions between the European Union and China. During these discussions, China expressed its readiness to use a “green channel” mechanism to facilitate the continued flow of rare earths to Europe and sought support from the EU for Chinese imports of specific dual-use products.
The European Commission leaders are gathered in Brussels today and tomorrow to assess the details concerning trade negotiations with China.
News Courtesy of CNBC
