China’s suspension of sweeping rare earth export controls has lent “new stability” to its ties with the European Union, the bloc’s ambassador to China has said, suggesting that the two sides now have a window to improve frosty relations.
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Speaking at a forum in Beijing on Thursday, Jorge Toledo initially offered a bleak assessment of the EU’s “difficult” relationship with China even after the high-profile summit in July between European Commission President Ursula von der Leyen and Chinese President Xi Jinping.
The two sides had agreed on a new mechanism to help smooth the export of rare earth elements and magnets during the meeting, with von der Leyen describing trade ties as having “reached an inflection point”.
The EU and China still “remain at an inflection point”, Toledo told the forum. “Since the summit, things have not improved. Things have been difficult because of many factors but especially when it comes to supply chains [and] export controls,” he said.
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The Europe-China trade relationship: deficits, disputes and de-risking
The Europe-China trade relationship: deficits, disputes and de-risking
But in a sign of optimism, Toledo added that both sides had an “opportunity” to repair ties after Beijing agreed to pause the expansion of its export controls over rare earths for one year.
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