China Offers Rare Earths to EU Amid Vietnam Pivot
China will maintain rare earth exports to the European Union via a green channel as the EU explores Vietnam to diversify its critical mineral supply.
The Ministry of Commerce of China announced on October 15 that it will continue exporting rare earths to the European Union using a green channel mechanism. This commitment remains independent of whether a separate trade deal between China and the United States expires in January. Beijing is offering this facilitation in exchange for reciprocal European support in resolving licensing cases involving Chinese imports of dual-use sector products.
These developments follow a period of volatility that began in October 2025, when Beijing tightened export restrictions in response to U.S. blacklist expansions. While President Xi Jinping and Donald Trump previously agreed to a one-year suspension of those measures—which U.S. Treasury Secretary Scott Bessent later extended by two months—the European Union is actively seeking to reduce its dependency on China.
Internal documents from June 2026 reveal the European Commission is exploring Vietnam as a strategic alternative for rare earths and tungsten. EU officials noted that reliance on China has disrupted supply chains for missiles and ammunition, creating a vulnerability ahead of an expected rearmament supercycle in 2027. European Commission leaders are meeting in Brussels on October 15 and 16 to review the current trade negotiations with China while simultaneously assessing cooperation with Vietnam to secure materials for defense manufacturing and AI data centers.
