China signaled progress in its trade relations with the European Union, announcing on Saturday its readiness to accelerate rare earth export approvals for EU companies and deliver a final decision on anti-dumping duties against European brandy by July 5. The update came after a meeting between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic in Paris.
China’s rare earth export restrictions, enacted in April, disrupted global supply chains essential for electric vehicles, semiconductors, aerospace, and defense industries. In response to EU concerns, China’s commerce ministry said it would establish a “green channel” for qualified applications to fast-track approvals, aiming to ease tensions with key trading partners.
Discussions on Chinese-made electric vehicles exported to Europe are also nearing completion. Both sides are in final negotiations over price commitment consultations. The European Commission had earlier suggested setting minimum prices to avoid tariffs, a move China is currently evaluating alongside proposed “new technical paths” for EV trade cooperation.
Meanwhile, the ongoing dispute over Chinese anti-dumping duties on EU brandy—primarily affecting French cognac producers like Hennessy, Martell, and Remy Cointreau—could be resolved soon. Duties of up to 39% were imposed after the EU took protective measures against Chinese EVs. Beijing has now confirmed it received proposals from French firms and relevant associations, and has agreed on core terms. A final decision is expected before the July deadline.
Commerce Minister Wang emphasized the need for mutual cooperation, urging the EU to promote fair, high-tech trade with China. These developments mark a potential thaw in the year-long strain between Beijing and Brussels, driven by tit-for-tat trade restrictions and strategic economic interests.