The Chinese Ministry of Commerce has announced its intention to accelerate the processing and approval of rare earth metal export applications from European Union firms, signalling a potential thaw in trade relations between Beijing and Brussels following months of mutual tariff measures and industrial disputes.
According to an official statement released on Saturday, the Chinese government is prepared to establish a “green channel” for qualified European companies, allowing for faster approval of exports involving strategic raw materials. The announcement follows high-level discussions held in Paris earlier this week between China’s Commerce Minister Wang Wentao and European Commissioner for Trade Maroš Šefčovič.
The talks also addressed ongoing consultations on Chinese-manufactured electric vehicles (EVs) exported to the EU, which have entered what the ministry described as a “final stage”. While progress has reportedly been made on price commitment negotiations, both sides acknowledged that further work is required to finalise the terms.
Beijing further confirmed that a final decision on its anti-dumping investigation into European brandy imports, particularly affecting French cognac, will be published no later than 5 July. This follows the imposition of provisional duties of up to 39%—a move widely interpreted as retaliatory after Brussels initiated measures against Chinese EVs to protect the bloc’s automotive sector. The duties have negatively impacted major French producers including Hennessy, Martell, and Rémy Cointreau.
The Chinese authorities stated that French companies and relevant trade associations have actively engaged with investigators, submitting detailed proposals on price undertakings. A consensus has reportedly been reached on the key terms, and the full agreement is now under formal review.
China’s announcement regarding rare earth exports is particularly notable given recent disruptions in the global supply chain. In April, Beijing suspended the export of a broad range of rare earth materials and magnets, a move that disrupted key industries including automotive manufacturing, semiconductors, aerospace, and defence production across multiple markets.
Rare earth elements, such as neodymium, dysprosium, and terbium, are essential to the production of high-performance electric motors and other advanced components. China currently dominates global supply, accounting for over 80% of rare earth processing capacity. Any easing of export restrictions is therefore of critical interest to European firms attempting to reduce supply chain vulnerability.
The Chinese commerce ministry emphasised that it “attaches great importance to the EU’s concerns” and is prepared to work with European stakeholders to ensure compliance and continuity in the trade of high-tech goods. Minister Wang also urged the EU to “meet us halfway” by facilitating reciprocal trade and supporting conditions favourable to both parties.
This diplomatic overture comes as part of a broader Chinese initiative to stabilise external economic relations in response to increasingly aggressive tariff policies from the United States under President Donald Trump. Recent Chinese efforts to build bridges with European capitals include bilateral discussions with UK Foreign Secretary David Lammy and informal signals suggesting a possible lifting of sanctions on Members of the European Parliament previously targeted over human rights criticisms.
In addition to trade in rare earths and EVs, Beijing has shown tentative openness to addressing longstanding EU concerns regarding market access, intellectual property protections, and competition policy. However, significant structural differences remain, particularly over the role of state subsidies and Beijing’s approach to industrial planning.
The EU and China had previously agreed in April to examine alternatives to blanket tariffs on Chinese EVs, with minimum pricing mechanisms now under evaluation. The Chinese side stated that the EU has proposed exploring “new technical paths” regarding electric vehicle trade, a development currently under review by Beijing.
With the 5 July deadline for the brandy investigation and the ongoing EV talks approaching critical junctures, the next few weeks are likely to determine the trajectory of China–EU trade relations in the second half of the year. While Saturday’s announcements indicate a willingness to cooperate, the outcome will ultimately depend on reciprocal concessions and the ability of both sides to navigate politically sensitive sectors without further escalation.
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