China Pledges Continued Rare Earth Exports to Europe Ahead of US Trade Truce Deadline
Beijing says it will keep approving rare earth shipments to the European Union regardless of whether its trade truce with the United States is extended past January.
At a glance
- China confirmed it will keep approving rare earth export licenses for Europe even if its U.S. trade deal expires in January.
- Beijing proposed a "green channel" for EU supplies while seeking European support for Chinese imports in dual-use sectors.
- A U.S.-China pause on rare earth restrictions and corporate blacklists had previously been extended to January.
China plans to maintain rare earth exports to Europe regardless of whether its temporary trade agreement with the United States continues beyond January, a Chinese Commerce Ministry spokesperson confirmed on Thursday.
Speaking to CNBC, ministry spokesperson He Yadong stated that Beijing remains willing to grant rare earth export licenses to European buyers despite the approaching expiration date of the U.S. pact.
Trade restrictions over critical minerals escalated last October when Beijing tightened controls on rare earth shipments, applying limits even to products containing as little as 0.1% of Chinese-origin material. The decision came after Washington broadened its trade blacklist to cover majority-owned subsidiaries of targeted Chinese businesses, a regulation that threatened to impact roughly 20,000 entities.
The resulting tensions were temporarily checked in late October 2025, when Chinese President Xi Jinping and U.S. President Donald Trump reached an agreement to suspend the reciprocal measures for one year. Ahead of a subsequent summit last month, U.S. Treasury Secretary Scott Bessent announced that the bilateral truce had been extended by two months through January.
Meanwhile, economic friction between Brussels and Beijing showed signs of easing following discussions last week between European trade commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao in Beijing. During the meeting, Chinese representatives proposed establishing a "green channel" framework to guarantee ongoing shipments of rare earths to Europe. In exchange, Beijing requested that the EU facilitate Chinese imports of certain goods within dual-use sectors.
European Commission officials are scheduled to review the state of trade talks with Beijing during meetings in Brussels on Thursday and Friday.
Source: CNBC Top News.
Questions and answers
- Will China stop rare earth exports to Europe if U.S. trade talks expire?
- No. China's Commerce Ministry said it intends to continue granting rare earth export licenses to Europe regardless of whether the bilateral trade agreement with the U.S. is renewed past January.
- What is the "green channel" proposal between China and the EU?
- China offered to create a "green channel" mechanism to maintain rare earth shipments to Europe, while asking the European Union to support Chinese imports of specific products in dual-use industries.
- When does the current U.S.-China trade truce expire?
- The temporary pause on export restrictions and corporate blacklists, initially negotiated by Donald Trump and Xi Jinping, was extended by two months and runs until January.
