China has promised to process applications of European companies to export rare earth faster. During a meeting with EU trading commissioner Maros Sefcovic in Paris last week, the Chinese Trade Minister Wangao said that the Mass of the People’s Republic was very important, said a spokesperson for the Ministry of Trade in Beijing.
China is ready to set up a “green channel” for applications that met the conditions to speed up the exam. In exchange, Wang hopes that the European side takes measures so that the trade of high-tech products with China is easier, the spokesperson said.
In addition, there are conversations about price connection for electric vehicles from China for the EU market in the final phase. However, both parties should make further efforts.
German industry warns against consequences
Beijing had seven rare earths in the customs flict in the customs flict with the United States and magnets made of them with export controls. The result: companies needed the export of these urgent need for electric motors or sensors. Raw materials with extensive applications.
Companies worldwide, such as in Europe and the US, are very concerned about the limitation. In Beijing, the EU Chamber of Commerce said that its affiliated companies recently received slightly more licenses.
In the meantime, German industry again warned of productions of production. “We are threatened with a metal crisis, similar to the energy crisis in 2022, when Russia was no longer a gas,” said the general director of the Federal Association of German Industry (BDI), Wolfgang Niedermark, the “Spiegel”.
The automotive industry, mechanical and plant technology and energy and defense technologies are mainly influenced: “With electric motors, robotics or drones, import dependence is not only high, but also system-critical.”
Commercial conversations also between Washington and Beijing
The Chinese wealth of rare earths should also be a valuable pressure tool in the customs poker with the US. Trade discussions have been running between the two countries in London since Monday. When it comes to rare earth, one hopes for a “handshake agreement,” said the Economic Adviser of the White House, Kevin Hassett. This would have to seal agreements by US President Donald Trump with his Chinese counterpart Xi Jinping.
“The purpose of today’s meeting is to ensure that you are serious, but also to literally shake hands,” Hassett told CNBC. It is expected that export checks are relaxed immediately after the handshake and rare earths are released in large quantities. The conversations between the two largest economies in the world started on Monday afternoon.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
