EU and China agree on plan to iron out rare earth export restrictions: von der Leyen

“We agreed – and this is new – to have an upgraded export supply mechanism. In other words, if there are bottlenecks, this upgraded support supply chain support mechanism can immediately check and solve the problem or the issue that is out there,” von der Leyen said.

China’s chokehold on rare earth exports has become one of the biggest issues in the EU-China relationship and was high on Brussels’ agenda as its leaders sat down with Chinese President Xi Jinping and Premier Li Qiang in separate sessions.

The tension stems from China’s decision to impose licensing requirements on the export of rare earth elements and magnets in April. The move was a response to US tariffs, but European firms were caught in the crossfire, with some production lines grinding to a halt.

Von der Leyen acknowledged China’s efforts “on fast tracking licences for the critical raw materials” and said progress was vital to repairing “trust in our trade relationship”.

“We need a reliable and secure supply of critical raw materials from China. Being seen as a reliable supplier and partner is clearly aligned with China’s long-term economic and strategic interests,” she said.

South China Morning Post