In a bid to ease mounting tensions with Brussels and stabilize global supply chains, Beijing has agreed to expedite approvals for rare earth export licences for certain European companies, China’s commerce ministry announced on Saturday.
The move comes after weeks of pressure from European officials and industry groups, who warned that strict Chinese controls on exports of rare earths and related magnets—introduced following former U.S. President Donald Trump’s renewed tariffs in April—were threatening to grind factories to a halt across the continent.
The Financial Times reported on Thursday that European businesses had lobbied Chinese authorities to establish a dedicated fast-track channel for “reliable” firms, warning that the newly imposed licensing regime had already caused significant disruptions. Beijing now says it is “willing to establish a green channel for qualified applications to speed up approval,” though it stopped short of specifying which companies would benefit or how quickly the process would unfold.
The decision follows a high-level meeting in Paris last week between Chinese Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Maroš Šefčovič. According to Chinese authorities, the two sides discussed a wide range of economic issues, including critical mineral exports and disputes over tariffs on electric vehicles and French brandy.
Šefčovič said on Wednesday that he had pressed Beijing to resolve the rare earth delays, which are affecting a wide spectrum of European manufacturers—from carmakers to appliance producers. Despite the announcement, executives remain cautious. One unnamed European executive based in Beijing warned that the “huge backlog” of pending licence applications means that supply bottlenecks could persist in the short to medium term.
The European Chamber of Commerce in China echoed these concerns on Friday. Jens Eskelund, the chamber’s president, said that although some emergency shipments had been approved, progress was still “not sufficient” to prevent widespread disruption. “Member companies are still struggling with both the delays and the lack of transparency,” he said.
China’s clampdown on rare earth exports is just one front in an increasingly complex trade relationship with the EU. Negotiations continue over Brussels’ proposed tariffs on Chinese electric vehicles, while Beijing is conducting its own investigation into European brandy imports, with results expected on July 5. Discussions on EV pricing are reportedly in their “final stage,” but China has urged the EU to show greater flexibility.
Meanwhile, in a parallel effort to de-escalate tensions, Donald Trump announced on Friday that a new round of high-level U.S.-China trade talks would take place on Monday in London.
Beijing’s latest concession is being viewed as a tentative step toward mending its fraught relationship with Europe, which has been strained by the bloc’s alignment with U.S. technology export restrictions. While European officials welcomed the announcement, they remain wary of Beijing’s long-term intentions.
“Warm words are not enough,” one EU diplomat noted. “We’ll judge by how quickly and transparently the green channel operates—and whether it truly alleviates the crisis facing our industries.”
