Specifically, Beijing postpone one year the implementation of the new and strict regime of export controls of rare earths announced on October 9, whose announcement had shaken the markets and caused supply problems in global supply chains.
The Asian giant has also said that it will relax the ban on export chips from the Nexperia company from Chinaimposed after the Dutch Government intervened a few weeks ago at its headquarters in the Netherlands for reasons of national security, a crisis that has put the European automobile industry in check.
These announcements once again reveal the extreme weakness of the European Union in negotiations with the two great powers. Despite his repeated attempts, Brussels has not been able to reach a specific bilateral agreement with Chinabut has to settle for the terms agreed between Xi and Trump.
In fact, experts from Brussels and China held a marathon day of trade negotiations at a technical level this Friday in the Belgian capital that has not translated into any differentiated results for the European Union.
“Constructive dialogue with the Chinese Ministry of Commerce at the level of senior officials. China has confirmed that the suspension of October export controls applies to the European Union“, The European Commissioner for Trade wrote this Saturday in his X account, Maros Sefcovic.
“Both parties reaffirmed their commitment to continue dialogue to improve the implementation of export control policies,” added Sefcovic.
Brussels complains about problems caused by the rare earth export licensing system that China introduced in April, as only 50% of EU applications have been processed correctly so that companies could receive these critical materials.
Las Rare earths are fundamental ingredients for strategic industries such as automobiles, the military or semiconductors. Beijing produces 90% of the world’s refined rare earths and rare earth magnets.
President von der Leyen also prepares a new plan called RESourceEUwhose objective is to guarantee access to alternative sources of critical raw materials for the European industry, promoting new agreements with countries such as Ukraine, Australia, Canada, Kazakhstan, Uzbekistan, Chile or Greenland.
Regarding the Nexperia crisis, the executive vice president of the Commission responsible for Technological Sovereignty and Security, Henna Virkkunen, met this Friday with the company’s interim CEO. A conversation in which he confirmed Brussels’ determination to find a “diplomatic solution” with China and discussed “possible short and medium-term solutions” to recover the supply of chips.
Beijing announced this Saturday that it will relax the ban on exporting Nexperia chips, but assures that it is doing so as part of negotiations with the United States, and not with the European Union.
“The undue interference of the Dutch government in the company’s internal affairs has led to the current disruptions in global industrial and supply chains,” said a spokesperson for the Chinese Ministry of Commerce.
“As a responsible world power“China takes full account of the security and stability of industrial and supply chains, both domestic and international,” the spokesperson continued.
“Companies facing practical difficulties can contact the Ministry of Commerce or local trade authorities. We will thoroughly evaluate the specific circumstances of each company and grant exemptions to those that meet the requirements,” says Beijing.
The European Automobile Manufacturers Association (ACEA) has warned this week of a imminent stoppage of vehicle production in Europe due to the blockage in the supply of basic microchips, essential for automobile electrical systems