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Can rare earths be a bond in China-EU relations?

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sunnylin01

Jul 01, 2025, 17:18

(Global Times) The issue of rare earths has recently drawn widespread attention in discussions about China-EU relations. The European side has complained that a decline in rare earth exports from China is affecting European businesses "very, very badly," and has indicated that the matter will be a key topic during the upcoming China-EU leaders' meeting. During the G7 Summit in Canada a few days ago, European Commission President Ursula von der Leyen even brandished a rare earth magnet, accusing China of "weaponizing" rare earths and calling on "like-minded partners" to join forces to counter the so-called "China shock."

China is the EU's most important supplier of rare earths. At a sideline event on mineral resources during the Munich Security Conference this February, an EU official stated that the EU is "100 percent dependent on China" for rare earth imports. As is well known, rare earths are critical for energy transition and national defense. China has long exported rare earths to the EU, providing vital support for the bloc's efforts to achieve digital and green transition goals, enhance economic competitiveness and strengthen economic security - all while China has borne the environmental and resource-related costs. It is puzzling and regrettable that instead of acknowledging this contribution, some in Europe have taken various measures that are ungrateful and even damaging.

China's export controls on rare earth-related items are implemented in accordance with the law to better safeguard national security and interests, fulfill non-proliferation obligations, and reflect China's consistent position of maintaining global peace and regional stability. Incomplete statistics show that since 2022, more than a dozen countries have imposed bans or restrictions on the export of rare earths, lithium, nickel and other minerals. 

According to the OECD's 2025 Inventory of Export Restrictions on Industrial Raw Materials, export restrictions on industrial raw materials increased more than fivefold between 2009 and 2023, with an acceleration in 2023 that saw a more than doubling of the growth rate compared with 2022. Growing export controls on strategic materials reflect evolving international political, economic and security landscapes and are a natural result of accelerating global energy transitions and rising geopolitical tensions. China's measures are in line with international norms and trend, non-discriminatory, not aimed at any specific country, and by no means constitute "weaponization" of resources or "economic coercion" against the EU as some claimed.

In fact, for products intended for civilian use, as long as they meet regulatory requirements and are approved through proper procedures, exports can generally proceed as normal. A spokesperson for China's Ministry of Commerce recently said China has fully considered the reasonable demands and concerns of various nations in the private sector, and has been accelerating the review of rare earth-related export license applications in accordance with relevant laws and regulations. China has approved a certain number of compliant applications in accordance with the law and will continue to strengthen the review and approval of such applications. China is willing to enhance communication and dialogue with relevant countries on export controls and promote the facilitation of trade. On June 19, Chinese Commerce Minister Wang Wentao held a meeting via video link with European Commissioner for Trade and Economic Security Maros Sefcovic, where the two sides engaged in in-depth consultations on trade topics, including export controls. 

These actions and statements demonstrate China's sincerity in responding to the EU's concerns and its willingness to resolve issues through cooperation - this is the right approach to managing China-EU differences. Baseless accusations and forming exclusive "cliques" will not help solve problems. How to establish a legally feasible and reciprocal institutional arrangement under the framework of export controls is a question worth exploring for both China and the EU. Such an approach would not only help stabilize China-EU industrial and supply chains, but also send a positive signal to the international community.

In May, President Xi Jinping exchanged congratulatory messages with President of the European Council Antonio Costa and President of the European Commission Ursula von der Leyen to warmly celebrate the 50th anniversary of the establishment of diplomatic relations between China and the EU. Xi said China and the EU are comprehensive strategic partners, as well as two major forces for building a multipolar world, two major markets supporting globalization, and two major civilizations championing diversity. A sound and stable China-EU relationship not only works to the advantage of both sides but also brings benefits to the whole world. 

As two constructive global players, China and the EU should take the 50th anniversary of their diplomatic ties as an opportunity to implement the important consensus reached by their leaders and make cooperation the dominant theme in bilateral relations. This is the direction both sides should take - and the correct way to handle trade frictions, including those concerning rare earth exports. From this perspective, while the rare earth issue in China-EU relations is currently a "hot" topic, if handled well, it need not be a flashpoint. Instead, it could become a "bond" that brings the two sides closer.

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