The Chinese government is offering a ‘fast track’ approval process to European companies for rare earth elements used in magnets for electric vehicles and renewable energy.
The move would help reduce supply chain issues that have hit European companies amid the US-China trade war.
Chinese Foreign Minister Wang Yi met with his German counterpart ahead of an EU-China summit and said that a fast track channel had been created for European companies.
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“Rare earth exports have never been – and should never become – an issue between China and Europe,” said Wang. “As long as export control regulations are followed and due procedures fulfilled, the normal needs of European enterprises will be guaranteed.”
“This is not an issue between China and Europe,” he said, “Controlling dual-use goods is standard practice. China and Germany both have the right to do so,”
“We are on the path to finding sustainable joint solutions that will bring the necessary detente,” said. German Foreign Minister Johann Wadephul.
China’s Ministry of Commerce announced it is speeding up its rare earth export licence reviews and has already approved several. The ministry plans to further strengthen the approval process and was willing to improve communication with other countries regarding export controls, said a spokesperson.
This comes after EU trade commissioner Maroš Šefčovič urged China to ease export controls imposed on seven rare earth elements as part of the trade war with the US. This had triggered supply chain issues in the automotive industry.
“I informed my Chinese counterpart about the alarming situation in the European car industry, because clearly rare earths and permanent magnets are absolutely essential for industrial production,” said Šefčovič after a meeting with Chinese Commerce Minister Wang Wentao.
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