China has started granting licenses with extended terms to allow European companies to import critical minerals essential for industries including clean technology, automakers, and defense contractors, the European Commission’s trade chief Maros Sefcovic told Bloomberg Television. The move comes after months of industry complaints that the previous licensing process, introduced in April, was overly bureaucratic and threatened to disrupt European manufacturing.
Under the new approach, Beijing has approved around 70% of requests for general licenses, up from an earlier estimate of 50%, Sefcovic said. These licenses allow pre-approved companies to receive repeated shipments of rare earths over a set period, easing supply constraints for sectors reliant on these materials. The previous system required detailed supply chain documentation and photos not even demanded by national regulators.
China’s control of critical minerals has long raised concerns in Europe, the US, and elsewhere, with the country holding near-monopolies on heavy rare earths used in robotics, automation, advanced defense systems, electric vehicles, and green energy technologies. While a trade truce between President Donald Trump and Xi Jinping in November reduced some pressure on global supplies, the April licensing system remained in place until now.
The EU has intensified efforts to secure a more predictable supply, citing potential threats to German carmakers and other key industries. Sefcovic emphasized that Brussels will continue to defend European jobs and companies amid a €300 billion trade deficit with China. The commission is also preparing new measures, including import surveillance and restrictions on foreign direct investment in strategic sectors, while implementing a €3 levy on small parcels from mid-2026 to address the surge in e-commerce imports from China.
