China has announced that it may fast-track rare earth export approvals for European Union companies, signaling a potential easing of trade tensions that have strained relations between the two economies.
The move, along with an expected decision on anti-dumping duties against European brandy imports by July 5, was disclosed in a weekend statement from China’s Ministry of Commerce.
The announcement comes amid a series of negotiations between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic, who met in Paris earlier this week.
Rare Earths: Supply Chain Relief in Sight?
China’s willingness to create a “green channel” for qualified rare earth applications could offer significant relief to European automakers, aerospace firms, chipmakers, and defense contractors. These industries have faced rising pressure since Beijing restricted exports of certain rare earths and magnets in April—a move that sent shockwaves through global supply chains.
The ministry emphasized that China “attaches great importance” to the EU’s concerns and is open to deeper dialogue on rare earth controls. Demand from sectors like electric vehicles and robotics has surged, and Beijing appears ready to adapt its approach to balance domestic policy with international cooperation.
Brandy Tariffs Near Final Verdict
On the contentious issue of European brandy imports, China said a final decision on its anti-dumping probe—originally due in January—would now be delivered by July 5. The case has become a flashpoint in EU-China trade relations.
Beijing imposed tariffs of up to 39% on European brandy, with French cognac brands such as Hennessy (LVMH), Martell (Pernod Ricard), and Rémy Martin (Rémy Cointreau) bearing the brunt. The move followed the EU’s action to curb imports of Chinese electric vehicles (EVs), sparking accusations of retaliation from French President Emmanuel Macron.
China’s Commerce Ministry said it had reached agreement on key terms with French companies and industry groups that submitted price commitment proposals. The ministry is now reviewing the full text and will publish a final decision before the July deadline.
EV Dispute Enters Final Stage
Talks on Chinese-made electric vehicles exported to the EU are also nearing a breakthrough. The two sides are reportedly in the final stages of price commitment consultations, potentially replacing the EU’s previously imposed tariffs with minimum pricing agreements.
China is also considering “new technical pathways” proposed by the EU to help resolve differences over EV trade. However, the ministry noted that more effort from both sides is needed to reach a lasting solution.
Trade Relations at a Crossroads
These developments mark a significant step forward after a tense year of tit-for-tat trade measures and growing economic nationalism. China is now signaling a more pragmatic tone, expressing hope that the EU will “meet us halfway” to promote stable, rules-based trade—particularly in high-tech sectors.
With rare earth approvals possibly accelerating, a brandy ruling on the horizon, and EV talks gaining traction, China-EU trade ties could be entering a phase of cautious de-escalation—though much still hinges on decisions in the coming weeks.