EU and China Agree to Stabilize Rare Earth Supplies

The European Union and China have reached an agreement to stabilize the flow of rare earth materials and products critical for military equipment and high-tech industries, including electric vehicles and wind turbines. Following meetings in Brussels between EU Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao, China agreed to suspend its rare earth export controls—previously implemented in April and October 2025—for a period of 12 months.

To ensure long-term mineral stability, the two parties established a special communication channel to review and fast-track export permits for European companies. Approximately 2,000 applications have been submitted, with just over half already approved. The European Commission is currently collaborating with China to develop a formal export licensing system and is seeking general licenses similar to those held by the United States.

While pursuing these diplomatic channels, the EU is diversifying its supply chain by developing domestic rare earth and magnet production in Estonia. Both parties stated that maintaining stable trade relations is essential for their economies and shared climate goals, though they continue to discuss the implementation of export control policies and European semiconductor sales regulations.