China has proposed the creation of a ‘green channel’ to facilitate the rare earth materials exports to the European Union, following recent restrictions. The initiative was revealed by the Ministry of Commerce on Saturday, showing a willingness to address European concerns over access to these critical resources.
Since April, China has mandated export licences for rare earth materials, strategic metals essential in the production of electric vehicle batteries, and numerous high-tech products. China currently dominates the market, accounting for over 60% of global rare earth mining and 92% of refined output, according to the International Energy Agency.
Industry stakeholders in Europe have raised concerns over the implementation of China’s licensing regime. In response, the ministry affirmed that such export controls are in line with international practices but acknowledged the importance of ensuring efficient trade with Europe.
“China attaches great importance to Europe’s concerns and is willing to establish a green channel for eligible applications, fast-track the examination and approval, and instruct the working level to maintain timely communication on this,” the ministry said in a statement.
The proposal was made during a meeting on Tuesday between China’s Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic. During the talks, Minister Wang also called on the EU to reciprocate by taking effective steps to promote and protect compliant trade in high-tech products between the two sides.
In addition to rare earths, discussions also addressed ongoing tensions over Chinese electric vehicle exports. The EU has imposed tariffs on these vehicles, citing unfair state subsidies. China and the EU are currently negotiating a price commitment agreement on EVs, which the ministry noted has reached the final stage, although further efforts are still required from both sides. These discussions come ahead of an upcoming China-EU summit, marking 50 years of diplomatic relations between Beijing and Brussels.
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