European Union and Chinese officials will meet in Brussels next week for technical-level talks aimed at easing trade tensions over Beijing’s tightening controls on rare earth exports.
The meetings will be held under the EU–China “Export Control Dialogue”, an official channel revived this year. Neither European Trade Commissioner Maroš Šefčovič nor China’s Commerce Minister Wang Wentao is expected to attend in person.
The move follows a two-hour video call earlier this week between Šefčovič and Wang, during which both sides discussed rare earths, EU tariffs on Chinese electric vehicles (EVs), and the Dutch government’s intervention at Nexperia, the China-owned semiconductor company headquartered in the Netherlands. Brussels confirmed on Friday that a mix of in-person and virtual sessions would take place, focusing on the licensing mechanics that have slowed the flow of critical inputs into European manufacturing.
Rare earth elements are essential to a range of technologies, from EV motors and wind turbines to aircraft engines and defence systems. China refines roughly 90% of the world’s processed rare earths and rare earth magnets and has in recent weeks expanded the scope of its export controls, adding further elements and technologies to its list and increasing scrutiny of end-use—particularly for semiconductor-related applications.
Brussels has said the curbs have already created supply pinch-points for European producers. Of around 2,000 priority licence applications submitted by EU companies since the spring, only just over half have been properly processed, according to Commission figures cited by officials. Temporary relief came after a series of arrangements with Washington and European partners, yet parts makers and car groups warn that inventories remain thin and planning horizons short.
Automotive suppliers have been among the most outspoken. Bosch cautioned on Friday that prolonged disruption to component inputs could force adjustments to production schedules, while several major carmakers have told staff they are preparing contingency measures if chip or magnet shortages intensify. These warnings come on top of concerns that rare earth restrictions could affect not only EV drivetrains but also conventional models that rely on magnet-equipped sensors and small motors.
The rare earths issue intersects with a broader set of EU–China trade frictions. The European Commission last year imposed additional duties on Chinese-built electric vehicles, with effective rates now as high as 45.3% for some manufacturers. Brussels and Beijing have since discussed alternatives, including the possibility of price undertakings—minimum import prices—to replace the tariff regime, though officials note that applying such arrangements to complex finished products is more challenging than for raw materials.
Meanwhile, the Netherlands has taken unprecedented steps at Nexperia, citing national security grounds to curb the influence of its Chinese owner, Wingtech. The move, which gives The Hague new powers over the company’s decisions, has drawn a response from Beijing and introduced fresh uncertainty for automotive chip supplies. Dutch and EU officials have been in contact with their Chinese counterparts to seek a stabilising arrangement; industry groups warn that a protracted stand-off could ripple through European and Asian car factories.
Beijing has framed its export measures as consistent with international practice and national security requirements, while urging the EU to maintain “strategic autonomy” in its trade policy. Brussels, for its part, has pressed for a prompt resolution and predictable, transparent licensing for critical inputs, arguing that lengthy approvals and shifting criteria risk undermining investment plans across Europe’s green and digital industries.
Next week’s Brussels sessions are expected to concentrate on three areas: clarifying licence processing timelines and documentation requirements; identifying categories where blanket controls could be replaced with targeted end-use checks; and establishing a contact mechanism to resolve individual company cases more quickly. Officials caution that any breakthrough is likely to be incremental, with follow-up rounds to be scheduled if working-level progress is made.
The Commission has also been coordinating with G7 partners, including the United States, on contingency planning for critical raw materials. Options under discussion range from joint stockpiles and reciprocal licensing fast-tracks to support for non-Chinese refining capacity. Such steps are intended to reduce the risk of sudden shortages while talks with Beijing continue.
For European manufacturers, the immediate priority is predictability. Companies say they can adapt to new compliance obligations provided rules are stable and approvals are timely. With inventories still being rebuilt after earlier disruptions, the pace and outcome of the Brussels dialogue will be closely watched across sectors reliant on rare earths and commodity semiconductors.
