Beijing bows to pressure over rare earth export delays

Beijing is showing signs of bending under mounting European pressure, as it moves to ease the chokehold it placed on rare earth exports, which is a critical lifeline for Europe’s manufacturing sector. In a policy shift first reported by the Financial Times, China’s commerce ministry announced it would fast-track export licence approvals for certain European companies, following complaints that recent controls were causing havoc across global supply chains.

The new rare earth licensing system introduced after Donald Trump’s April tariffs dubbed “liberation day” by his supporters, had drawn sharp criticism from European industry groups, who warned of factory stoppages and shipment delays. Now, after a high-stakes meeting in Paris between China’s commerce minister Wang Wentao and EU trade chief Maroš Šefčovič, Beijing says it’s “willing to establish a green channel for qualified applications to speed up approval.”

Still, the devil remains in the details — or the lack thereof. The commerce ministry didn’t disclose how fast approvals would move or which companies would benefit. One unnamed European executive in Beijing cautioned that manufacturers might still face delays due to a “huge backlog” of pending applications.

The move comes amid broader tensions, as China pushes back against Europe’s alignment with US restrictions on chip sales, while also contending with EU investigations into Chinese electric vehicles and its own retaliatory scrutiny of French cognac. Šefčovič said he had pressed his Chinese counterpart over the licence delays, and though China has now responded, the European Chamber warned on June 6 that the progress “has not been sufficient” to stop supply chain disruptions.

Even as some urgently needed shipments trickle through, chamber president Jens Eskelund noted that companies were “still struggling” — not just with delays but also with a “lack of transparency.”

As global economic powers tiptoe between diplomacy and trade defence, this concession from Beijing may be just the opening gambit in a long game of economic tug-of-war.

By Sabina Mammadli