EU Trade Commissioner Šefčovič said that the European Union and China have established a special communication channel to ensure the smooth supply of critical rare earth materials needed by EU industries.
Speaking at a business forum in Kuwait on the 5th, Šefčovič stated that he has communicated directly with Chinese Commerce Minister Wang Wentao multiple times regarding this issue. He emphasized that if export procedures are not managed well, it would have a "very negative impact" on EU production and manufacturing.
● Accelerating Approval of Rare Earth Export Licenses
He said that Brussels and Beijing have agreed to give priority to applications from European companies. Through the new communication channel, officials from both sides are cooperating to review and speed up the approval process for rare earth export licenses.
Šefčovič noted that since the implementation of export controls, European companies have submitted about 2,000 applications to the relevant Chinese authorities, with just over half having been approved.
He also mentioned that Brussels continues to urge Beijing to expedite the approval of the remaining applications, while also promoting supply diversification, including developing new rare earth and magnet material production projects in Estonia.
The European Commission pointed out on the 4th that EU and Chinese officials are discussing the establishment of a “general license” mechanism to facilitate rare earth exports, similar to the arrangement the United States previously obtained from China.
After China announced expanded rare earth export controls last month, there were concerns in Europe that the production of electric vehicles, wind turbines, and other technologies relying on permanent magnets would be affected. Subsequently, Europe and the U.S. reached a series of agreements with China, temporarily easing supply tensions. At the same time, the EU, the United States, and other countries and regions are also accelerating the establishment of alternative rare earth supply chains.