China Says Rare Earth Exports to EU Unaffected by Expiration of US Trade Deal
nashnova research
China's commerce ministry said it will keep approving rare-earth export licenses for the EU regardless of whether the US–China trade truce is renewed. This means → the EU's near-term rare-earth supply-disruption risk has receded, but the longer-term picture hinges on whether the proposed 'green channel' mechanism actually materializes.
What exactly did China promise?
Spokesperson He Yadong said Thursday that the January expiry of the US–China trade deal will not affect rare-earth export approvals for the EU.
This means → Beijing has decoupled EU rare-earth supply from US–China tensions — the EU no longer needs to fear collateral damage from that dispute.
In plain terms = China told Europe: your rare earths and my fight with Washington are two separate things.
How did rare-earth controls tighten?
Last October China tightened export controls on all rare earths, covering products with Chinese-sourced rare-earth content as low as 0.1%.
The move was retaliation after the US added majority-owned subsidiaries of Chinese firms to its entity list, potentially affecting roughly 20,000 Chinese entities.
US and Chinese leaders met in late October 2025 and agreed to a one-year pause; Treasury Secretary Scott Bessent said the truce has been extended two months to January.
What came out of the China–EU talks?
EU Trade Commissioner Maroš Šefčovič met China's Commerce Minister Wang Wentao in Beijing last week, easing bilateral tensions.
China proposed a "green channel" mechanism to secure rare-earth supply to the EU — while asking the EU to support Chinese imports in specific dual-use product categories.
This reflects a clear Beijing strategy: supply in exchange for market access — rare earths are not free; Europe must offer reciprocal openings.
What to watch next?
EU Commission leaders meet Thursday and Friday in Brussels and are expected to review the specific details of the China trade negotiations.
Whether the "green channel" mechanism actually takes effect is the critical test for China–EU rare-earth supply stability.
In plain terms = the promise is on the table, but whether rare earths flow steadily depends on how Brussels responds.
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