Background on the Key Players and Their Relevance
The European Union (EU) and China are set to hold high-level technical talks on Thursday in Brussels to address the ongoing crisis sparked by China’s tightened controls on rare earth exports and related technologies, citing national security reasons. The negotiations come after weeks of escalating tensions between the two parties.
Maroš Šefčovič, the European Commission’s trade commissioner, previously announced that discussions would take place this week to tackle the crisis. However, Brussels has yet to clarify the level of China’s delegation arriving on Thursday, amidst confusion regarding whether China’s Minister of Commerce, Wang Wentao, will be part of it.
Initial Contact and Upcoming Discussions
A preliminary contact between the teams occurred via video conference on Monday to set the stage for discussions, according to Olof Gill, Šefčovič’s spokesperson. Gill further explained that a “high-level technical” Chinese delegation will arrive in Brussels on Thursday to engage in more substantial talks.
Context and Impact of the Crisis
In July, during a summit between the EU and China, both parties pledged to establish a dialogue to resolve the crisis caused by China’s strengthened controls on rare earth exports. Since April, China has restricted the supply of critical materials for European industries.
In early October, Chinese authorities informed export operators of expanded restrictions introduced in April. Now, exporters must obtain an export license for dual-use items issued by China’s Ministry of Commerce before selling affected materials to countries and regions outside China.
Brussels has consistently regarded these measures as “unjustified and harmful.” Šefčovič reiterated this stance during a conversation with China’s trade minister last week, emphasizing that such practices contradict efforts to stabilize commercial relations and build reliable connections with China.
Key Questions and Answers
- What is the crisis about? The crisis stems from China’s tightened controls on rare earth exports and related technologies, citing national security reasons. This has disrupted the supply of critical materials for European industries since April.
- Who is involved in the negotiations? The European Commission, represented by trade commissioner Maroš Šefčovič, and Chinese authorities are engaged in high-level technical talks to find a resolution.
- What have Chinese authorities done recently? In early October, China expanded restrictions on rare earth exports, requiring exporters to obtain an export license for dual-use items issued by China’s Ministry of Commerce before selling affected materials to countries and regions outside China.
- How has the EU responded to these actions? The EU has labeled China’s measures as “unjustified and harmful,” urging China to act responsibly and stabilize commercial relations.
