China Strikes Conciliatory Tone In Rare Earth Spat With EU

Chinese Foreign Minister Wang Yi struck a conciliatory tone toward Germany and Europe in the ongoing trade dispute over critical rare earths during a visit to Berlin, Deutsche Presse-Agentur (DPA) reported.

China’s export restrictions on rare earths have recently placed significant pressure on global industries, including in Germany. I Photo: Xinhua

“The issue of rare earths was not, is not, and will not be a problem between China and Europe, between China and Germany,” Wang said at a press conference with German Foreign Minister Johann Wadephul, according to an official translation.

He added that if applications are submitted in accordance with the law, “the normal needs of Europe and Germany can also be met.”

Wadephul responded that uncertainties and opaque export restrictions on rare earths were damaging trade relations and “China’s image in Germany as a reliable trading partner overall.”

He added that individual solutions would not be enough to restore lost trust and emphasized the need for sustainable, long-term solutions to bring about the “urgently needed” relaxation in tensions.

China’s export restrictions on rare earths have recently placed significant pressure on global industries, including in Germany.

Companies in the automotive and mechanical engineering sectors have expressed concern about supply disruptions for critical metals used in sensors, electric motors, and other components.

When asked whether a compromise with the EU could be reached before the upcoming EU-China summit at the end of the month, Wang reiterated: “This is not an issue between China and Europe. It is not a problem between us. The question does not arise.”