Von der Leyen, President of the European Commission, to Visit Beijing in July
Summit Meeting with Chinese President Xi Jinping
Public Dispute Between EU and China at Recent G7 Summit
Regarding the upcoming European Union (EU)?China summit scheduled for next month, reports have indicated that one of Europe's main objectives is to expand access to critical minerals, including rare earth elements.
According to Reuters and other sources on June 19 (local time), Ursula von der Leyen, President of the European Commission, and Antonio Costa, President of the European Council, are scheduled to hold talks with Chinese President Xi Jinping and others in Beijing, China, on July 24?25.
The EU is reportedly hoping that China will either extend the approval period for rare earth exports or, at the very least, withdraw its export permit policy for shipments destined for the EU.
Previously, in April, China imposed export restrictions on seven types of rare earth elements worldwide in response to U.S. tariff policies against China. Rare earths are essential resources for industries that require machine parts, including those producing motors for automobiles and aircraft.
China operates a "green channel" fast-track system for rare earth exports to EU companies; however, questions have been raised about its effectiveness. An EU diplomat criticized, "Although China has introduced a fast-track system, more than half of all permit applications remain unprocessed."
According to the European Association of Automotive Suppliers (CLEPA), as of June, only 25% of rare earth export applications submitted to Chinese authorities had been approved. The remaining 75% are either delayed or denied, resulting in the suspension of operations at some European auto parts factories. For similar reasons, Ford in the United States temporarily halted production of its Explorer SUV at its Chicago plant at the end of May, and Suzuki in Japan reportedly stopped production of all models of its Swift compact car this month.
Meanwhile, China and the EU recently clashed over Chinese industrial subsidies during the Group of Seven (G7) summit held in Canada. After President von der Leyen criticized China's industrial policies, Chinese Foreign Ministry spokesperson Guo Jiakun stated at a regular briefing on June 18 that her remarks were "prejudiced and based on double standards, not on facts."
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