EU, China agree on rare earths, climate but divisions remain on trade, Ukraine

Daily News Egypt

2 days ago

The European Union and China agreed at their 25th summit in Beijing on a new mechanism to help facilitate the export of rare earth elements and issued a joint statement on combating climate change, but divisions over issues including bilateral trade and the Russia-Ukraine conflict will require further talks to be addressed.
The issue of rare earth metal supply chains has become an increasingly significant topic in global discussions. During a high-level meeting with Chinese President Xi Jinping on Thursday, European Commission President Ursula von der Leyen said the EU was 'not seeking to decouple or cut supply chains with China, and welcomes Chinese companies to invest and do business in Europe'.
Following the summit, von der Leyen elaborated on the new agreement at a press conference in Beijing.
'We have agreed on an enhanced export supply mechanism. In other words, if bottlenecks arise, this mechanism can immediately intervene to examine and solve the problem or issue at hand,' she said.
Chinese customs data shows that China's magnet exports to the EU accounted for about half of its total shipments in June, the highest rate this year, with more licences having been granted in accordance with laws and regulations.
Earlier, during a European tour on July 3, Chinese Foreign Minister Wang Yi said that 'the export of rare metals will not become a contentious issue between China and the European Union'.
He added that it is the right and international responsibility of any sovereign state to impose necessary regulations on dual-use goods, which can be used for both civilian and military purposes. Wang also noted that the Chinese government had established a 'fast-track' mechanism to facilitate exports to European companies.
Feng Chongping, director of the Institute of European Studies at the Chinese Academy of Social Sciences and president of the Chinese Society for European Studies, said: 'The Europeans always talk about 'de-risking', but they immediately follow it with 'no to decoupling', because decoupling is impossible.'
He added that the two sides share deep economic interests. 'The European economy cannot do without China. Europe, as China's second-largest trading partner, is one of its most important export markets.'
A 'crucial juncture' or a 'turning point'?
The European Chamber of Commerce in China on Friday welcomed the outcomes of the EU-China summit, saying in a statement that the meeting had 'exceeded expectations'. It highlighted several positive developments, including the joint statement affirming a mutual commitment to combating climate change and the establishment of the enhanced export supply mechanism.
Jens Eskelund, president of the European Chamber of Commerce in China, said the 50th anniversary of the establishment of diplomatic relations between the EU and China presented an opportunity not only to acknowledge successes but also to conduct a 'maintenance check' on the relationship.
During the summit in Beijing on July 24-25, held to mark the 50th anniversary of diplomatic relations, President Xi said that China-EU relations had reached 'another crucial juncture in history', while von der Leyen described the relationship as being at a 'turning point'.
On the same day, China's Ministry of Foreign Affairs announced that the two sides had reached several important agreements, particularly in the fields of climate change and export controls.
Croatian Foreign Minister Gordan Grlić Radman, during a visit to China before the summit, said that competition exists, 'but cooperation is the only option to ensure the future of the next generations'.
'There may be differences between China and the European Union, but we need dialogue to keep communication channels open and achieve a balanced, equal and mutually beneficial relationship by reducing trade and investment barriers,' he added.
China's ambassador to the EU, Cai Run, said that 'some frictions are inevitable, but resolving differences requires political sincerity and strategic resolve', stressing that economic and trade cooperation remains the cornerstone and main driver of China-EU relations.
Division over the war in Ukraine
European leaders often view their relationship with China through the prism of the Russia-Ukraine war.
On July 21, China's foreign and commerce ministries condemned unilateral EU sanctions on Chinese banks and companies over Russia, vowing to take necessary measures to protect their legitimate rights. In February, Foreign Minister Wang Yi reiterated that China-Russia relations are characterised by 'not being an alliance, not a confrontation, and not targeting any third party'.
When asked about European pressure on China to stop buying gas from Russia, Wang questioned: 'If China does not import oil and gas from Russia, how can it meet the needs of more than 1.4 billion people?'.
Feng Chongping noted that moving forward in China-EU relations cannot ignore problems and challenges, but said that some European media and analysts focus only on the negatives.
'These challenges and problems actually show where the common interests between China and the EU are concentrated,' he said.
Climate change and technology
Following the summit's conclusion, von der Leyen posted on X, formerly Twitter: 'China-EU cooperation on climate can set a global benchmark, and we will work together to make COP30 a success'.
On Friday, United Nations Secretary-General António Guterres welcomed the commitment by China and the EU to deepen cooperation on tackling climate change and supporting a just global transition. On the same day, Chinese foreign ministry spokesman Guo Jiakun praised the joint statement on climate, considering it an expression of a shared commitment to addressing climate issues and promoting green development.
'Although the EU sees great competition with China, China is considered an indispensable partner on the climate file,' Feng Chongping said in an interview, confirming that cooperation between the two sides in this area is proceeding well.
In the joint statement, China and the EU pledged to accelerate the global deployment of renewable energy, promote the flow of high-quality green technology and products, and make them available, affordable and suitable for all countries, including developing nations.
The two sides also agreed to enhance bilateral cooperation in areas such as energy transition, climate change adaptation, methane emissions control, carbon markets, and green and low-carbon technologies. Both parties committed to submitting their 2035 Nationally Determined Contributions (NDCs) before the UN Climate Change Conference, COP30.
The joint statement did not mention the United States, which is set to withdraw from the Paris Agreement again in January 2026 after the re-election of President Trump and his administration's submission of a formal withdrawal request.