China says it will speed up rare earths exports to EU firms
China suspended exports of a wide range of rare earths and related magnets last month. (EPA Images pic)
SHANGHAI : China is willing to accelerate the examination and approval of rare earth exports to European Union firms and will also deliver a verdict on its trade investigation of EU brandy imports by July 5, its commerce ministry said today.
Price commitment consultations between China and the EU on Chinese-made electric vehicles exported to the EU have also entered a final stage but efforts from both sides are still needed, according to a statement on the Chinese commerce ministry's website.
The issues were discussed between Chinese commerce minister Wang Wentao and EU trade commissioner Maros Sefcovic in Paris on Tuesday, according to the statement.
The comments mark progress on matters that have vexed China's relationship with the European Union over the past year.
Most recently, China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.
The ministry said China attached great importance to the EU's concerns and 'was willing to establish a green channel for qualified applications to speed up the approval process'.
Commerce minister Wang during the meeting 'expressed the hope that the EU will meet us halfway and take effective measures to facilitate, safeguard and promote compliant trade in high-tech products to China', according to the statement.
Chinese anti-dumping measures that applied duties of up to 39% on imports of European brandy – with French cognac bearing the brunt – have also strained relations between Paris and Beijing.
The brandy duties were enforced days after the European Union took action against Chinese-made electric vehicle imports to shield its local industry, prompting France's President Emmanuel Macron to accuse Beijing of 'pure retaliation'.
The Chinese duties have dented sales of brands including LVMH's Hennessy, Pernod Ricard's Martell and Remy Cointreau.
Beijing was initially meant to make a final decision on the brandy duties by January, but extended the deadline to April and then again to July 5.
China's commerce ministry said today that French companies and relevant associations had proactively submitted applications on price commitments for brandy to China and that Chinese investigators had reached an agreement with them on the core terms.
Chinese authorities were now reviewing the complete text on those commitments and would issue a final announcement before July 5, it said.
In April, the European Commission said the EU and China had also agreed to look into setting minimum prices of Chinese-made electric vehicles instead of tariffs imposed by the EU last year.
China's commerce ministry said the EU had also proposed exploring 'new technical paths' relating to EVs, which the Chinese side was now evaluating.
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