EU discusses export restrictions with China and considers countermeasures

China has confirmed that the recently announced suspension of export restrictions on rare earth metals will also apply to the European Union, according to European Commission Vice President Maroš Šefčovič, Report informs.

Despite this, European industries-particularly the automotive sector-remain vulnerable due to ongoing uncertainty in trade relations between the United States and China. Experts note that it is not just industry players but Brussels' direct negotiations with Beijing that largely shape the situation.

The European Commission has confirmed that consultations with China regarding export restrictions are ongoing. At a briefing in Brussels, Commission spokesperson Olof Gill stated that China has pledged to ensure a reliable and secure supply for microchip manufacturers, though the details of this commitment are still being clarified.

The suspension of October's restrictions does not resolve all issues, as regulatory changes introduced by Beijing in April remain in effect. These were discussed during a face-to-face meeting with Chinese officials last Friday as part of the export control dialogue, according to a statement from the Commission.

In April, China introduced rules requiring companies to obtain licenses before exporting rare earth metals, which drew criticism from EU industry representatives. Since August, European companies have reported production halts due to shortages of semiconductors and chips-components vital to many high-tech sectors.

Gill noted that Brussels is working to establish stable and predictable trade conditions for rare earths and other essential materials needed by European industry. If negotiations with China yield unfavorable results, the EU is considering countermeasures, including potential trade restrictions.

As previously reported by Bloomberg, the European Commission is discussing a new trade regulation that could require certain Chinese exporters to guarantee the supply of rare earths and other critical materials when shipping goods to Europe. The EU is also evaluating whether to impose its own export controls to reduce Beijing's influence-though these discussions are still in early stages.

Following last week's meeting between Chinese President Xi Jinping and US President Donald Trump, China agreed to postpone the implementation of new export restrictions for one year. The EU immediately requested assurances that this decision would also apply to member states, which China has now confirmed.

Šefčovič stated that Brussels and Beijing are engaged in high-level official talks on export controls: "I will talk to my Chinese counterpart very soon," he told journalists in Rome last weekend.

He added that the EU is considering the possibility of joint procurement of critically important raw materials to reduce dependence on individual suppliers.