The European Union and China will continue engagement on export control policies after senior officials met in Brussels, according to EU Trade Commissioner Maroš Šefčovič.
The talks, held on Friday, focused on efforts to steady a trading relationship strained by technology and raw material restrictions, and followed Beijing’s decision to pause for one year an expansion of rare earth export controls.
Mr Šefčovič said China had confirmed that its suspension of the October measures applies to the EU, and that both sides had reaffirmed their commitment to improve the implementation of export control rules.
🇪🇺🇨🇳 Constructive talks with @MOFCOM_China at senior official level. China confirmed that the suspension of the October export controls applies to the EU. Both sides reaffirmed commitment to continue engagement on improving the implementation of export control policies.
— Maroš Šefčovič🇪🇺 (@MarosSefcovic) November 1, 2025
The Brussels meeting came amid heightened concern in European industry over access to critical inputs. China is the dominant player in rare earth extraction and processing, and its tightening of export licensing this autumn prompted warnings from manufacturers dependent on these materials for magnets, batteries and other components. The one-year pause gives companies time to adjust supply chains and stock strategies, but it does not unwind existing restrictions.
Officials also faced mounting pressure to address risks in semiconductor supply. The Netherlands moved on 30 September to take control of Nexperia, a Chinese-owned chipmaker with significant operations in Europe, citing national-security and continuity-of-supply concerns. Beijing subsequently blocked exports of Nexperia products from China, prompting fears of shortages of the basic—yet essential—chips used widely across the automotive sector. EU discussions with China are expected to cover this dispute as part of a broader effort to stabilise flows of key technologies and components.
Dutch authorities have said they did not nationalise Nexperia outright but asserted powers to review and overturn harmful management decisions. Reporting since then indicates that the intervention followed concerns about planned job cuts and the transfer of sensitive know-how and equipment to China. The stand-off has become a test case for Europe’s approach to economic security measures and their practical impact on supply chains.
Automakers have warned that prolonged disruption could affect production schedules. Although many vehicle makers rely on higher-end processors for advanced driver-assistance functions, they also consume very large quantities of the simpler power and signal chips produced by firms such as Nexperia. Any prolonged bottleneck at packaging and test sites in Asia, or shipment restrictions linked to corporate control, would add to an industry already managing long lead times on certain components.
For Brussels, the outcome of Friday’s consultation with Chinese counterparts feeds into two strands of policy. First, the EU is working to operationalise its “de-risking” approach: reducing strategic dependencies without cutting trade ties. Second, the Commission is preparing follow-on measures to the EU Chips Act, with officials signalling that lessons from the Nexperia case—on stock visibility, supplier mapping and crisis coordination—will inform the next phase.
On critical raw materials, the Commission has pressed for predictability in licensing and customs procedures to avoid sudden supply shocks. The Chinese side’s one-year pause on rare earth control expansion removes an immediate source of uncertainty, but the underlying regulatory landscape remains more restrictive than a year ago. Companies are likely to continue diversifying sources and processing routes, including in Europe, the United States and allied jurisdictions, while monitoring any further guidance from Beijing.
Diplomatic attention will now turn to whether the EU and China can translate the commitment to “continue engagement” into practical steps. In the near term, that would include clarity on licensing timelines, product coverage and exemptions under China’s export regime, alongside mechanisms for officials to resolve shipment issues rapidly. In semiconductors, industry will watch for signs of accommodation that restores predictable flows of mature-node chips essential for automotive and industrial uses, even as security reviews remain in place.
Neither side announced new concessions beyond the rare earths pause. However, officials indicated that channels would remain open to manage case-by-case problems and to prevent escalation. With European manufacturers still exposed to concentrated suppliers for both inputs and finishing services, the durability of the Brussels–Beijing dialogue will be measured less by communiqués and more by whether parts and materials keep moving.
