EU Seeks Rare-Earth Deal Amid China Export Controls, Trade Dispute

The European Union is engaged in high-level talks with China to resolve a trade dispute over export controls on rare earth elements, crucial for industries like automotive, electronics, and defense. This comes as the EU aims to reduce its heavy dependence on China for these critical raw materials by diversifying supply sources and increasing domestic production. Concurrently, the United States, under President Donald Trump, has reached an agreement with China to suspend certain export restrictions on rare earths for one year, a move the EU hopes will also apply to them. The trade tensions escalated after the Netherlands placed Chinese chipmaker Nexperia under surveillance, leading China to ban re-exports to Europe. European Commission officials, including Ursula von der Leyen, are advocating for measures to rapidly reduce Europe's reliance on Chinese raw materials amid ongoing technical discussions with Beijing. Despite welcoming any development that eases global trade barriers, the EU maintains a focus on its own bilateral negotiations with China regarding rare earth minerals.