China has signalled it is willing to make concessions to the European Union in a dispute over export limits on rare earths and permanent magnets, with Chinese Minister of Commerce Wang Wentao assuring the EU that existing limits would not affect EU supply chains.
EU Trade Commissioner Maroš Šefčovič made the announcement on Monday in Brussels following talks with Wang.
Both sides also launched new trade and investment consultations aimed at defusing broader trade conflicts, Šefčovič said.
China introduced the export limits on rare earths and high-performance magnets following tariff decisions by US President Donald Trump.
The measures have hit German and other European companies. Rare earths are used in smartphone and television screens, as well as in electric motor drives, semiconductors and turbines.
Under the trade and investment consultations launched on Monday, China and the EU intend to seek practical solutions to current challenges, according to a joint statement by Šefčovič and Wang.
Concrete work is planned on the topics of the balance of trade and investment, export limits, intellectual property rights and reform of the World Trade Organization (WTO).
Šefčovič said trade relations needed to become more balanced. China's exports to the EU continued to rise while the market share of European companies in China was shrinking. This trend is not sustainable, and the status quo is not an option, he said.
According to Šefčovič, the timetable calls for concrete results to be delivered by October this year. He said he would travel to Beijing later in the year to assess progress. The EU had recently been considering new additional tariffs on imports from China if no progress was made in resolving trade conflicts.
To enable the exchange of relevant data and monitor trade flows, both sides agreed to establish a joint monitoring mechanism, which is also intended to improve transparency.
