A tentative deal to loosen China’s limits on vital rare earth exports, which have alarmed the bloc and threatened to shut down entire sectors, was revealed by the European Union on Thursday.
The world’s supply of seven rare earth elements and magnets required for the defense, energy, and automotive industries was significantly impacted by the strict restrictions, which started in early April during a trade dispute with the United States.
According to European Commission President Ursula von der Leyen, “these export controls have placed significant strain on some European companies,” following a one-day summit in Beijing. We require dependable and secure supplies of vital raw materials from China in order to maintain confidence in our trading relationship.
We decided to have an improved export supply structure, which is novel,” she stated. “In other words, if there are bottlenecks, this (system) can immediately check and solve the problem or the issue that is out there.”
Von der Leyen maintained, however, that much more work was required to drastically restore balance to EU-China economic ties, which witnessed a goods imbalance of more than €300 billion last year. Due to weak Chinese consumer demand and US President Donald Trump’s unreasonably high tariffs, the number might rise in 2025. We’ve arrived at a definite turning moment,” she declared.
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