China and EU agree to upgrade export safeguards to ensure critical mineral supplies

The EU and China agreed to a new “export supply mechanism” to address Europe’s concerns about Beijing’s export controls on rare earths, European Commission President Ursula von der Leyen said after a summit in Beijing on Thursday.

“We agreed – and this is new – to have an upgraded export supply mechanism. In other words, if there are bottlenecks, this upgraded support supply chain support mechanism can immediately check and solve the problem or the issue that is out there,” von der Leyen said.

She acknowledged China’s efforts “on fast tracking licences for the critical raw materials” and said progress was vital to repair “trust in our trade relationship”.

“We need a reliable and secure supply of critical raw materials from China. Being seen as a reliable supplier and partner is clearly aligned with China’s long-term economic and strategic interests,” she said.

The tension stems from China’s decision to impose licensing requirements on the export of rare earth elements and magnets in April, in response to US tariffs. European firms were caught in the crossfire, with some production lines grinding to a halt.

“I think the summit showed that we can find practical solutions. This will allow the export licence to function at more speed in delivering on these critical raw materials to the companies,” von der Leyen said.