Beijing offers rare earth supply assurances as EU pushes to narrow trade gap
What Happened
China and the European Union agreed to intensify trade dialogue after talks between Wang Wentao, China's commerce minister, and Maros Sefcovic, the EU trade commissioner. Beijing also pledged to continue facilitating export licences for rare earth minerals and permanent magnets destined for the EU. The two sides reached an understanding on hybrid-vehicle trade and agreed to continue negotiations to avoid a broader trade conflict.
Key Takeaways
The agreement comes as Brussels seeks to address what it calls an "unsustainable" trade imbalance with China of roughly €1 billion per day. While the rare-earth pledge offers relief to European manufacturers, major disagreements over market access, subsidies, and trade deficits remain unresolved.