EU Commissioner for the Internal Market, Thierry Breton Costa, said that in the next few weeks, a high-level Chinese delegation is coming to Brussels for important talks about Beijing’s recent controls on rare earth exports. The meetings relate to concerns in Europe about the implications for Europe’s strategy in the context of China’s ever-growing control over the supply of rare earth minerals. These minerals are fundamental to the development of electric cars, military weapons, and many other things.
The meetings will take place after China imposed control on the export of rare earth technologies
According to Channel News Asia, the meetings will discuss the exports of rare earth technologies for high-performance magnet production.
The magnets are used in several important industries, which include the defense industry, and therefore, the controls have raised concerns in Brussels that China’s controls will disrupt the supply chains of the green and digital economies in Europe.
Costa said that the next talks will be about the transparency, predictability, and fairness of the global trading system, more specifically, the trading of critical raw materials.
Alluding to the restrictions on the European Union (EU) industry, Costa said:
“We appreciate the opportunity and hope the rest of the world will get the opportunity to cooperate and clarify the restrictions.”
AL24 News noted that the officials from the Chinese Ministry of Commerce and the Ministry of Industry and Information Technology will be part of the Chinese delegation. The visit is part of a strategy to restore impaired trade between the EU and China, which has been complicated by global politics, human rights, and trade access.
China’s control over the world’s rare earths for the last 30 years
China has 80% of the world’s rare earths and has been refining 80% of the Earth’s for the last 30 years.
Refined rare earths have been key to the world, and China has been restricting trade recently. The United States and the EU have been focusing on mining, recycling, and trade agreements for resources to reduce the critical minerals.
Experts do not debate the fact that constructing alternative supply chains will be time-consuming despite the possible economic consequences of short-term supply chain disruptions.
The discussions in Brussels will focus on multiple strategic topics
The discussions in Brussels will focus not only on export controls but also on the integration of other topics such as strategic trade visibility, investment screening, and industrial policy.
European Union (EU) officials have referred to reciprocity in trade and expect bordering trade equity.
They also pointed out to the controversial Chinese model of trade, where Chinese firms have a competitive edge and operate in Europe unfettered.
It suffers from a sense of protectionism yet a fear of economic retaliation, but the equilibrium shows that political peace is in crisis. The Chinese government has stated that national export controls are not directed at specific countries but are for national security and to ensure sustainable development.
The EU also states a defense of trade and of open market principles
It is also a balance of trade controls and is simply stating that the market is a reciprocal statement of trade principles.
The results of these discussions might affect the future of EU-China relations as well as the future of global supply chains. Since the world is becoming dependent on technology and rare earth elements are fundamental to these technologies, the implications are massive from both perspectives.
Brussels is a key place when it comes to these discussions, and the world is paying close attention. This may offer an insight as to how the biggest economies of the world handle the intertwining of trade, national security, and technology. This is crucial in a world with many centers of economic and political power.