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At a high-stakes one-day summit in Beijing, the European Union and China reached a preliminary agreement to ease export restrictions on rare earth elements, a move welcomed by European Commission President Ursula von der Leyen as vital to restoring trust in bilateral trade relations.
The curbs, introduced by China in April 2025 amid escalating trade tensions with the United States, disrupted global supply chains for critical materials used in defence, energy, and automotive sectors, prompting production halts across Europe. Von der Leyen confirmed that China will implement an upgraded export supply mechanism to fast-track licensing and resolve bottlenecks.
Despite this progress, von der Leyen emphasized that the EU–China relationship has reached an inflection point, citing a €305 billion trade deficit and persistent concerns over market access and industrial overcapacity. She warned that without meaningful concessions from Beijing, the EU may reconsider its current level of openness to Chinese imports.
European Council President António Costa echoed the call for a fair and mutually beneficial trade framework, while also urging China to use its influence to help end Russia’s war in Ukraine, a conflict the EU says China has indirectly supported through dual-use exports.
Chinese President Xi Jinping, while pledging cooperation on climate action and rare earths, pushed back against EU trade measures, warning that “decoupling and severing supply chains will only result in self-isolation”. He criticized the EU’s “de-risking” strategy and called for continued openness in trade and investment.
The summit concluded with a joint declaration on climate cooperation ahead of COP30, but left major issues unresolved, including tariffs on electric vehicles, public procurement disputes, and geopolitical tensions over Ukraine.
You can read more from Firstpost, NBC San Diego, and South China Morning Post.
EC-President-Ursula-von-der-Leyen-and-Chinese-Premier-Li-Qiang.
