EU to press China for better rare earth access at July summit

European Union leaders will use a summit with China next month to seek better access to Chinese rare earths and critical minerals, four sources familiar with the plans said, as the two sides tackle an array of tariff-related issues.
For years, China has had a near monopoly on
rare earth production
. It increased its export controls on the minerals, in demand from automakers, the defence industry and producers of renewable energy, following the tariffs announced by US President Donald Trump on April 2.
China also has grievances with the EU as the bloc has sought to protect its auto-making sector from cheaper Chinese imports, while China has imposed measures on France's brandy industry.
European Commission President Ursula von der Leyen and European Council President Antonio Costa will travel to Beijing for the summit on July 24-25.
It marks 50 years of EU-Chinese relations and will also take place two weeks after a deadline set by the United States for most trade partners to agree deals to avert higher tariffs.
As automakers have said China's export restrictions on rare earth alloys, mixtures and magnets could cause production delays, European leaders are expected to press their case with President Xi Jinping and Premier Li Qiang in separate meetings, said an EU official, who declined to be identified.
Two EU sources said the EU mission to China is solely focused on rare earths until the summit.
China's ministry of commerce in May said a "green channel" expediting rare earth licences for EU firms had been set up. However, one EU diplomat said that out of several hundred applications, no more than half had shown signs of being processed.
"The situation is improving, although the percentage of cleared licences does vary. Additionally, even once the licence is given, delays can still be seen in customs clearances," Adam Dunnett, secretary general of the European Chamber of Commerce in China, said.
The quest to resolve the supply crunch is among a number of trade conflicts between Europe and China.
Brussels has imposed tariffs on Chinese-made electric vehicles alleging unfair state subsidies, prompting China to impose anti-dumping measures on EU brandy. Beijing has also initiated trade probes into EU pork and some dairy goods.
Beijing not Brussels
The lead-up to the summit, has not been smooth. It had been Brussels' turn to be the host but after China indicated Xi would not travel to the Belgian capital, Beijing was chosen as the venue.
Some EU officials said they did not expect the summit to produce major deals, one commenting that China was "playing its cards very well". The official said China had identified rare earths as a major vulnerability and was waiting until the last minute to make any concessions.
The EU wants China to grant rare earth licences for a longer period or to scrap them for exports to the bloc. In any case, it wants Beijing to clearly differentiate between the EU and the United States. China offered to prioritise civilian-use rare earth export licences for US firms during talks in London earlier this month.
"If China wants the EU equidistant between itself and the Trump administration, China's trade regimes cannot equate the US and Europe either," said Hosuk Lee-Makiyama, director of trade think tank ECIPE, who met senior Chinese officials last week.
Another EU official said the impending deadline to secure an agreement with the United States, which might press the EU to be hard on China in exchange for moderating US tariffs, made it difficult for the EU to work on a deal with Beijing.
The official said it was always possible the July 9 deadline would be postponed or that details of any US deal could emerge later, limiting the possibility of EU progress with China.
China wants the EU to replace its import tariffs on Chinese electric vehicles with minimum price commitments and other concessions after it delayed the imposition of duties on EU brandy. China has said talks are in the final stages, but EU officials say progress has been limited.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Economic Times

19 minutes ago

• Economic Times

Swiggy pilots travel and lifestyle concierge app Crew

Swiggy has launched a travel and lifestyle concierge app, Crew, on a pilot basis, according to information about the app published on Google Play Store. This marks the Bengaluru-based company's entry into a new business after food delivery, dining out, quick commerce and professional services. The app, which involves human concierges in addition to generative artificial intelligence (AI), helps users plan trips, going beyond simply suggesting itineraries.A Swiggy spokesperson did not comment on the year, ahead of its initial public offering (IPO), the company had started testing Rare Life, a personalised concierge service focused on elite and exclusive experiences. However, this project was discontinued after Swiggy decided not to scale it up beyond a small cohort. In January, the company rolled out professional services marketplace Pyng, signalling that it was following a house of apps strategy similar to Chinese tech giants Alibaba and Meituan, which have also had multiple apps for various services. This is in contrast to the 'superapp' strategy, where consumers are expected to come for one basic use-case and transact across multiple services. Also, superapps are yet to see any noteworthy success at scale in Crew and Pyng, Swiggy now has the main app, which houses food delivery, quick commerce, dining out and its events platform Scenes. The quick commerce unit, Instamart, also got a separate app in launch of Crew was first reported by Entrackr. Swiggy recently suspended its peer-to-peer parcel delivery service Genie, which was available in 70 cities. The company has also licenced its cloud kitchen brands to food service outfit Kouzina, with plans to fully transfer these businesses upon fulfilment of certain conditions. On Friday, Swiggy shares ended 3.1% higher at Rs 385.90 on the BSE.

Time of India

26 minutes ago

• Time of India

Russian drones slam into 2 Ukrainian cities, killing at least 1 person in nighttime attack

Russian drones slam into 2 Ukrainian cities, killing at least 1 person in night-time attack (Image: AP) KYIV: Russian drones slammed into two Ukrainian cities, killing at least one person in night time attacks, authorities said Friday, as a Kremlin official said he expected an announcement next week on dates for a fresh round of direct peace talks. Russia's overnight drone assault targeted the southern Ukraine port city of Odesa and the north-eastern city of Kharkiv, hitting apartment blocks, officials said. The barrage of more than 20 drones injured almost two dozen civilians, including girls aged 17 and 12, Ukraine President Volodymyr Zelenskyy said. "Russia continues its tactics of targeted terror against our people," Zelenskyy said on messaging app Telegram, urging the United States and the European Union to crank up economic pressure on Russia. Russia has shown no signs of relenting in its attacks, more than three years after it invaded its neighbour. It is pressing a summer offensive on parts of the roughly 1,000-kilometer (620-mile) front line and has kept up long-range strikes that have hit civilian areas. Kremlin spokesman Dmitry Peskov said Friday that the date for the next round peace talks is expected to be agreed upon next week. Kyiv officials have not recently spoken about resuming talks with Russia, last held when delegations met in Istanbul on June 2, though Ukraine continues to offer a ceasefire and support U.S.-led by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo diplomatic efforts to stop the fighting. The two rounds of brief talks yielded only agreements on the exchange of prisoners and wounded soldiers. Ukraine and Russia's Defence Ministry announced the latest swap Friday, although they did not specify how many troops were involved. Zelenskyy said most of those returning home had been in captivity for more than two years. A fire caused by Russia's nighttime strike on Odesa engulfed a four-story residential building, which partly collapsed and injured three emergency workers. A separate fire spread across the upper floors of a 23-story high-rise, leading to the evacuation of around 600 residents. In Kharkiv, at least eight drones hit civilian infrastructure, injuring four people, including two children, according to Ukraine's Emergency Service. Russia launched 80 Shahed and decoy drones overnight, Ukraine's air force said, claiming that air defences shot down or jammed 70 of them.

India.com

29 minutes ago

• India.com

Iran-Israel war: Can US' GBU-57 bunker buster destroy Iran's underground Fordow nuclear site? Experts make stunning claim, say Trump is unsure of...

Trump is unsure whether the GBU-57 bunker buster can take out Iran's Fordow nuclear site. (File) Iran-Israel war: US President Donald Trump has threatened to join its ally Israel in its war against Iran, demanding an 'unconditional surrender' from Tehran, and even threatening to assassinate Iranian Supreme Leader Ayatollah Khamenei. However, beyond the war rhetoric, Trump remains undecided on whether to commit the United States to a war in the Middle East which it may not be able to pull out of for at least 5-10 years, especially since the US President remains skeptical about whether its lethal bunker buster bombs have the capability to destroy Iran's underground Fordow nuclear facility. Trump unsure about bunker buster's ability to destroy Fordow site According to defense experts, Donald Trump is unsure whether even the GBU-57 Massive Ordnance Penetrator (MOP) bunker buster, aka the 'mother of all bombs', would be able to destroy the Fordow Fuel Enrichment Plant, which is basically buried beneath a gigantic mountain, and is protected by multiple units of Russian-made S-300 air defense systems. As per media reports, Trump has told defense officials that the US would be justified in attacking Iran only if the bunker buster bomb is guaranteed to destroy the uranium enrichment facility at Fordow. The US President was told that the gargantuan 30,000lbs (13.6 tonne) GBU-57 bunker buster would destroy the Fordow facility, but Trump remains unconvinced, and as such has not yet given the green light for America to join the Israel-Iran war. Additionally, experts believe that Trump is also looking at the possibility of Iran coming to the table for a 'deal' due to fear of US involvement in the Iran-Israel war. US would need tactical nukes to take out Fordow? The GBU-57, aka the bunker buster bomb, is a 30,000 pound bomb which is dropped using the US' B2 stealth bombers, and while its capable of taking out any other hardened underground facility, the Fordow site is unique as it has been specially built to withstand US' capabilities, particularly its ultra-heavy bunker buster bombs. The Fordow Fuel Enrichment Plant is a hardened, ultra-secure nuclear facility built deep beneath a mountain, and surrounded by tall peaks on all sides. The mountainous terrain renders even the most advanced cruise missiles ineffective, and the site is protected by a large number of air defense systems concentrated in a small region, making it almost impossible for any missile or drone to go through. US defense officials believe that only a tactical nuclear weapon would be able to completely destroy the Fordow nuclear facility, but Trump is not in favor of using nukes to attack the site. Quoting people familiar with the matter, The Guardian reported that Israeli intelligence estimates that the Fordow nuclear plant, which is built under a mountain near the Qom city, could be up to 90 meters deep. To reach such a depth, the US would have to have to weaken the ground with conventional bombs and then drop a tactical nuclear bomb from a B2 bomber to wipe out the entire facility. However, Donald Trump, at least for now, is not in favor of using the nuclear option, the report said.