Rare earths: China signals easier exports to the EU

China has promised to speed up the processing of applications from European companies to import rare earths from the People's Republic. "Export controls on rare earths and other materials are common practice at the international level," explained a spokesperson for the Ministry of Commerce in Beijing. However, China attaches great importance to the European Union's concerns. Therefore, it is prepared to establish a "green channel" for applications that meet the requirements to expedite the review process.

Chinese Trade Minister Wang Wentao had already expressed this view on Tuesday at a meeting with EU Trade Commissioner Maros Sefcovic, who had criticized the Chinese export restrictions. Wang hoped, in return, that the European side would take measures to facilitate trade in high-tech products with China, the spokesperson in Beijing added.

Export controls since April

At the beginning of April, the government in Beijing imposed export controls on seven rare earth elements and magnets made from them in a tariff dispute with the United States . As a result, companies must submit complex applications to obtain approval to export these raw materials, which are urgently needed for electric motors and sensors.

China dominates the global market for these materials. According to the EU Commission in Brussels, Europeans source almost 100 percent of their imported rare earths from the People's Republic.

Shortage is "alarming for German industry"

The temporary export restrictions on so-called heavy rare earths and magnets from China are "alarming for German industry," Wolfgang Niedermark, Managing Director of the Federation of German Industries (BDI), told the news magazine "Der Spiegel." If Beijing persists, it could lead to "cross-sectoral problems" such as production stoppages. "We are threatened by a metals crisis, similar to the energy crisis in 2022, when Russia stopped supplying gas," Niedermark warned. The automotive industry, mechanical and plant engineering, and energy and defense technologies are particularly affected. "For electric motors, robotics, and drones, import dependence is not only high, but system-critical."

se/pg (dpa, afp, spiegel.de)