Brussels– In a significant diplomatic exchange held in Brussels, the European Union pressed China to immediately lift its export restrictions on rare earth elements and to cease any indirect support for Russia’s military operations in Ukraine. The appeal was made during high-level talks between EU foreign policy chief Kaja Kallas and Chinese Foreign Minister Wang Yi, as both sides prepare for the upcoming EU–China summit in Beijing scheduled for July 24–25.
The EU expressed deep concern over China’s continued export controls on rare earths, which have disrupted European industries heavily reliant on these critical raw materials for producing magnets, wind turbines, electric vehicles, and defense technologies. Since China imposed the restrictions in early April, European firms have reported price surges and supply chain instability. Companies like Neo Performance in Estonia have begun charging premiums ranging from \$10 to \$30 per kilogram, with some prices increasing up to 30 percent.
During the discussions, the EU also raised security concerns regarding Chinese-made drones and components that are allegedly being used by Russian forces in Ukraine. European leaders have called on China to take a more neutral stance and refrain from enabling Russian military capabilities through trade or technology transfers.
In parallel, the EU has asked China to use its diplomatic influence with Iran to help de-escalate tensions in the Middle East and contribute to the resumption of nuclear talks. Both parties reaffirmed their commitment to the Non-Proliferation Treaty and peaceful international engagement.
In response to the rare earth crisis, the European Commission has accelerated efforts to build strategic autonomy in critical materials. France has emerged as a key player, launching nine major projects under the EU’s Critical Raw Materials Act. Companies like Solvay and start-ups such as MagREEsource are developing domestic processing and recycling capabilities with the support of public and private investments.
Furthermore, the European Commission is exploring partnerships with Japanese and Chinese firms to establish local magnet production facilities within Europe. Siemens Gamesa has initiated discussions with Chinese suppliers to set up European manufacturing plants and has already formed supply agreements with Japan's TDK.
EU Internal Market Commissioner Thierry Breton and Commissioner Stéphane Séjourné have both advocated for the creation of a joint European strategic reserve of rare earth materials. This proposal aims to protect member states from future supply disruptions similar to those triggered by China’s recent policies.
Although China has resumed some rare earth exports, trade flows remain under tight licensing control. Exporters, particularly those shipping to the United States, continue to face delays and uncertainty.
The July summit in Beijing, which will include European Commission President Ursula von der Leyen and European Council President Antonio Costa, is expected to be a critical test of EU-China relations. Key outcomes will likely focus on trade imbalances, global security concerns, and the future of strategic cooperation in a volatile geopolitical landscape.