Exclusive | China has begun issuing rare earth export licences to European firms, EU sources say

Development comes as bloc continues push for structural solution to tense issue that has leapt atop bilateral agenda

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Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province. Photo: Reuters

Published: 1:35am, 27 Jun 2025Updated: 1:49am, 27 Jun 2025

China has started issuing export licences for rare earth elements and magnets to European companies, EU sources confirmed, although the bloc continues to push for a structural solution to a situation that has jumped to the top of the bilateral agenda.

European governments and companies have for weeks been lobbying Chinese authorities to ease export restrictions, which were introduced in response to US President Donald Trump’s “reciprocal tariffs” in April.

Earlier on Thursday, China’s commerce ministry said it had been “accelerating approval of rare earth export licences” for EU firms in “accordance with the law”.

“China stands ready to further enhance communication with relevant countries on export controls, actively facilitating convenient and compliant trade flows,” said ministry spokesman He Yadong.

EU sources stopped short of saying that there was a “green channel” open – a term used by Beijing – but stated they have observed the ministry granting licences.

Workers dig at a rare earth mine in central China’s Jiangxi province. Photo: Chinatopix via AP

Nonetheless, the issue has clouded Beijing’s efforts to improve its trade ties with Europe ahead of a leaders’ summit in China next month.