China will send representatives to Brussels in the coming days to discuss a solution to the EU's limited access to China's rare earths, the EU's trade commissioner, Maros Sefcovic, said.
- China's restrictions on rare earth exports are unfair and harmful. They undermine our bilateral relations, said Maros Sefcovic.
He had a nearly two-hour conversation with Chinese representatives on Tuesday on the subject. According to Sefcovic, the conversation was "constructive".
- We agreed to intensify contacts at all levels. At the end of the conversation, I invited the Chinese authorities to come to Brussels in the coming days to find solutions, says Maros Sefcovic.
According to the EU Trade Commissioner, the Chinese minister accepted the offer, so that the EU and China negotiating teams can meet in Brussels in the coming days.
- We have no interest in an escalation. But it is crucial that we find a quick solution, says Maros Sefcovic.
Relationships are strained
The meetings come at a critical time, when relations between the EU and China are becoming increasingly strained.
According to the EU Commission, Chinese control of rare earths is already having serious consequences for European companies. This is because rare earths are used in virtually all electrical appliances with digital components.
According to Maros Sefcovic, China currently only approves about half of European companies' requests to export rare earths.
However, it is not only the EU that is dissatisfied. China, for its part, is furious with the Dutch government's decision to take control of the Chinese-owned chip manufacturer Nexperia. Nexperia is based in the Netherlands but owned by China.
Yet earlier this month, the Dutch government took the power to "stop and reverse" the company's decisions. According to Dutch media, this means that Nexperia cannot transfer assets or hire managers without the approval of the Dutch government.
According to Dutch media, the decision is because, according to the Dutch government, China is threatening "the protection of important technological knowledge and capabilities on Dutch and European soil". Or in other words: Just like with the rare earths, China is restricting Europe's access.
Like the rare earths, electronic chips are crucial in a wide range of products. The showdown not only threatens relations between the Netherlands and China, but also increases trade tensions between the EU and China, says Sefcovic.
- Time is also of the essence here. I think both China and the Netherlands are aware of that. Both parties are interested in de-escalating the situation and restoring value chains to prevent production from coming to a standstill around the world, says Sefcovic.
He is thus referring to the fact that a large number of other companies depend on the chips that Nexperia produces in their production.
According to Sefcovic, the Netherlands and China are in contact about the situation, and the EU Commission will support the attempt to find a quick solution.
/ritzau/
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