The European Commission is under pressure. It will receive representatives of the Chinese authorities in Brussels “in the coming days” to find “urgent solutions” to the restrictions imposed by China on rare earths, one of its officials announced this Tuesday, October 21.
The European Commissioner for Trade, Maros Sefcovic, announced the organization of this meeting during a press conference in the European Parliament, after having spoken by video for two hours with his Chinese counterpart, Wang Wentao, about the impact of this measure for European companies.
Binding restrictions for European companies
China is the world’s leading producer of rare earths, essential materials for digital technology, cars, energy and even weapons. The Asian giant announced this month new controls on the export of technologies linked to these rare earths, much to the dismay of the United States and Europe.
The European Union has already publicly protested the new restrictions announced by Beijing, saying they were forcing companies in its member countries to halt production and causing economic damage along supply chains. It intends to act both diplomatically and at an operational industry level to assist sectors facing these restrictions.
A “coordinated response” with G7 partners
On Monday, the Vice-President of the Commission, Stéphane Séjourné, announced to the leaders of the industrial sectors concerned that the EU was preparing several initiatives, in particular regarding common purchasing and storage centers or the recycling of rare earths. Additionally, Maros Sefcovic indicated last week that he was working on a “coordinated response” to China with his G7 partners.
Since April, China had already established a licensing system for certain exports of rare earths, which has caused turbulence in several sectors globally.
Source: BFM TV
