China's Commerce Ministry spokesperson He Yadong confirmed that the country will maintain its rare earth exports to Europe, even if the U.S. trade deal is not extended beyond January. This decision comes after China imposed stricter export controls on rare earths last October, which included products containing even a small percentage of Chinese-sourced materials.
The backdrop to this situation involves a temporary truce between the U.S. and China, which was extended to January following a meeting between President Xi Jinping and President Donald Trump.
Recent discussions between European trade commissioner Maroš Sefčovič and Chinese Commerce Minister Wang Wentao have also contributed to easing trade tensions, with China proposing a 'green channel' for rare earth exports while seeking support from the EU for its dual-use product imports.
As European Commission leaders convene to discuss trade negotiations, China's proactive stance on rare earth exports could have significant implications for both the European market and the broader geopolitical landscape