Beijing seeking a win-win in EU talks

A high-level Chinese technical delegation is in Brussels for closed-door talks with European Union officials that began on Thursday, focusing on rare earths, the Netherlands' control of a Chinese chip manufacturer, and other issues of mutual concern.

China's Ministry of Commerce announced on Oct 9 export controls on a range of core rare earth technologies, spanning mining, smelting, and recycling of secondary resources. The measures require overseas organizations and individuals to obtain a dual-use export license before shipping controlled items abroad.

Earlier, the ministry said that prior to the announcement of the measures, China had notified relevant countries and regions through existing bilateral export control dialogue mechanisms. The ministry also said that China had established a special "green channel" for European companies and has held multiple rounds of consultations and dialogue with the EU over the issue.

The measures had sparked concern in the EU, a major importer of rare earths critical to technologies including renewable energy, carmaking and defense systems.

A European Commission spokesperson said on Tuesday that the two sides had held preparatory virtual consultations to pave the way for this week's talks. According to reports, the delegations also touched upon September's forced takeover of Nexperia, a semiconductor company owned by China's Wingtech Technology, by the government of the Netherlands.

"Having issues and concerns is not a big problem. What matters is that dialogue continues," said Ding Chun, director of the Center for European Studies at Fudan University in Shanghai. As major players in the global economy, China and the EU have their own interests while respecting each other's, he said, adding that communication helps both sides better understand these interests, which is a sign of healthy interaction, rather than confrontation.

In a written statement to China Daily, the China Chamber of Commerce to the EU, or CCCEU, welcomed this week's consultations on the upgraded Export Control Dialogue, calling them "timely and constructive amid heightened global economic complexity".

The CCCEU also noted that earlier this week, Chinese and United States negotiation teams reached a framework agreement establishing a one-year "trade truce" addressing China's Oct 9 export control measures and the US' "50 percent penetration rules" of Sept 29, alongside other trade-related measures such as tariffs. "This development provides a positive signal of stability to global markets," the chamber said, emphasizing that China and the EU enjoy strong complementarities in key raw materials, rare earths, semiconductor equipment, and new energy technologies.

According to Ding, the ongoing China-EU negotiations could help both sides find ways to avoid a "lose-lose outcome".

He said: "This carries significant implications not only for bilateral industries and global supply chain resilience but also for the stability and improvement of China-EU relations in a rapidly changing world."

The CCCEU added that "open, transparent, and predictable frameworks can help prevent the politicization of supply chains while supporting green and digital transitions "and expressed hope that this week's consultations will strengthen policy communication and foster mutual trust and cooperation between China and the EU.