China's Commerce Ministry said on Saturday it had proposed creating a “green channel” to facilitate rare earth metal exports to the European Union after Beijing restricted their overseas sales.
Since April, Beijing has been requiring licenses for exports of these strategic materials from China, which accounts for more than 60 percent of rare earth metal production and 92 percent of the world's refined metals, according to the International Energy Agency.
The metals are used in a wide range of products, including batteries for electric vehicles, and there has been criticism from industry insiders of China's licensing procedures.
“Export controls on rare earth metals and other goods are an international practice,” the Commerce Department said in a statement.
“China attaches great importance to Europe's concerns and is willing to create a green channel for eligible applications, speed up the review and approval process, and instruct the working level to maintain timely communication on this issue,” the ministry added.
The comments were attributed to Chinese Commerce Minister Wang Wentao, who met EU Trade Commissioner Maros Sefcovic on Tuesday.
During the bilateral talks, Wang expressed hope that the bloc “will take reciprocal actions and take effective measures to facilitate, protect and promote the legitimate trade of high-tech products with China,” according to the Commerce Ministry.
European officials and companies have repeatedly criticized China's export restrictions, which they say have caused serious damage to Europe's long-suffering industries.
Sefcovic said on Wednesday that he told Wang that Beijing's control over rare earth metals and magnets had caused “an alarming situation in the European auto industry” and affected makers of numerous household appliances such as washing machines.
The EU Chamber of Commerce in China lobby group said on Friday there had been “some improvement” in the issuance of export licences in Beijing, but warned “it is still not enough to prevent serious supply chain disruptions for many companies.”
The disagreement over export controls comes as EU and Chinese officials prepare the ground for an EU-China summit next month to mark 50 years since the establishment of formal diplomatic relations between Brussels and Beijing.
It also comes as EU and Chinese officials continue negotiations over Brussels' tariffs of up to 35.3% on Chinese electric vehicles, which were introduced last year.
During the meeting, Wang and Šefčovič also discussed tariffs on electric vehicles, which Brussels says are needed to protect EU companies from unfairly subsidized Chinese competitors.
The two sides are currently discussing the possibility of Beijing accepting “price commitments,” or setting a minimum price for electric vehicle exports in exchange for tariff waivers.
“Negotiations on price commitments for electric vehicles between China and Europe have entered the final stage, but both sides still need to make efforts,” the Commerce Department said.
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