China clears rare earths export applications, not clear if Indian companies included – Firstpost

China said Saturday (June 7) it is prepared to accelerate the approval process for rare earth exports to European Union companies and will issue a final ruling on its trade probe into EU brandy imports by July 5.

The developments come amid broader efforts to resolve ongoing trade tensions between Beijing and Brussels. Talks were held earlier this week in Paris between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic, China’s Commerce Ministry said in a statement.

Price commitment discussions on Chinese-made electric vehicles exported to the EU have also reached the final phase. “Efforts from both sides are still needed,” the ministry said.
The ministry added that China “was willing to establish a green channel for qualified applications to speed up the approval process” for rare earth exports.

It also noted that Beijing recognised rising demand for rare earth materials across sectors including electric vehicles and robotics and that it “was willing to further strengthen communication and dialogue with relevant countries” on the matter.

Rare earths and trade friction

China’s decision in April to halt exports of a wide range of rare earths and related magnets disrupted global supply chains, affecting industries from automotive and aerospace to semiconductors and defence. The move has become a flashpoint in EU-China trade relations.

The ministry said it “attached great importance to the EU’s concerns” and indicated it would work to resolve the bottleneck in a timely manner.

Brandy duties under review

China’s anti-dumping duties of up to 39 per cent on European brandy, particularly French cognac, were implemented shortly after the EU imposed tariffs on Chinese electric vehicles. The Chinese measures have impacted major French producers including LVMH’s Hennessy, Pernod Ricard’s Martell, and Remy Cointreau.

French President Emmanuel Macron previously accused Beijing of “pure retaliation” over the duties.

Beijing had initially planned to announce a final decision on the brandy investigation in January, later postponing it to April and now July 5. On Saturday, the Commerce Ministry confirmed that French firms and industry associations had submitted price commitment proposals and that investigators had reached agreement on key terms.

“Chinese authorities are now reviewing the complete text on those commitments and will issue a final announcement before July 5,” the statement said.

Electric vehicle negotiations ongoing

The European Commission said in April it was working with Beijing to consider a minimum price framework for Chinese electric vehicles in lieu of the tariffs imposed in 2023. China’s Commerce Ministry said the EU also proposed examining “new technical paths” related to electric vehicles, and that China was now evaluating those ideas.

Wang also told Sefcovic that China hoped the EU would “meet us halfway and take effective measures to facilitate, safeguard and promote compliant trade in high-tech products to China.”

With inputs from agencies