European Parliament calls on China to lift export restrictions on rare earths
MEPs backed a motion that said China’s actions were unjustified and coercive, and said China’s “quasi-monopoly” in the rare earth sector gave it enormous influence.
The motion was passed on Thursday (July 10) with 523 votes in favor, 75 against and 14 abstentions. Although the motion is not legally binding, it is influential because the European Parliament is the only directly elected institution in the European Union. In addition, MEPs called on the EU to provide a specific budget for achieving the 2030 target for local mining and processing of key mineral resources and to assess the minimum required level of strategic rare earth reserves.
In early April this year, China issued regulations requiring rare earth exporters to obtain export licenses issued by the Ministry of Commerce. The motion passed by the European Parliament calls on China to lift these export restrictions. The motion also mentioned that Beijing has set up a “green channel” for European companies to simplify relevant procedures.
China accounts for about 60% of the world’s rare earth mining and produces 90% of the world’s rare earth magnets, which are widely used in various fields such as automobiles and home appliances. Chinese Foreign Minister Wang Yi sought to ease European concerns in Berlin last week, saying it was international practice to restrict exports of goods that could have military uses, but that EU demands could still be met if they applied. Rare earths are expected to be a key topic at a EU-China summit later this month.
