【By Observer News, Xiong Chaoran】On December 15th local time, Jevgenij Ševčovič, the European Commission's Commissioner for Trade and Economic Security, told Bloomberg Television that China has started issuing long-term rare earth licenses, allowing European companies to access key mineral resources crucial to industries such as clean technology, automotive manufacturing, and defense contractors.

"We have received preliminary reports from industry insiders who are obtaining these general licenses, but we need more detailed information to assess the entire process."

EU officials believe that one-year licenses will help alleviate bottlenecks in the application process, which had threatened the normal operation of German automakers and other key industries.

"This idea has been positively received, and it seems we have already obtained the first general licenses, and the Chinese side has accepted our argument that the original procedure established in April was too cumbersome," said Ševčovič.

Photo of Ševčovič

Bloomberg reported on the same day that the European Commission is the EU's executive body responsible for trade negotiations, and in recent years has intensified efforts to seek general rare earth licenses. Once issued, general licenses would allow companies to repeatedly export rare earths to pre-approved buyers over a period of time.

Ševčovič said under the previous procedures, companies had to submit documents including photos and detailed information about supply chains, which even national regulatory authorities did not require.

The general license system is one of the solutions the European Commission believes can address this issue. Ševčovič said that since April this year, China has approved about 70% of the license applications, higher than the previously estimated 50%.

Previously, China established an export licensing system aimed at regulating the transport of certain key minerals, including rare earths. Rare earths are a sector where China has almost complete control, and this move caused panic among many industries in Europe, the United States, and other regions.

In late October, China and the US held economic and trade consultations and a summit in Kuala Lumpur and Busan, with rare earths being a focal point of the discussions.

After the meeting, the spokesperson of the Ministry of Commerce of China answered questions from reporters on the joint arrangements of the China-US economic and trade consultation in Kuala Lumpur, stating that China would suspend the implementation of relevant export restrictions announced on October 9 for one year, and would study specific plans. The White House also released a "summary of achievements".

However, according to a report by the South China Morning Post, after the White House released its document on November 1, the EU assessed that the US statement about China suspending export controls on rare earths and other key minerals did not include the EU's industries.

Bloomberg noted that although the agreement eased pressure on global rare earth supplies, the license system introduced and implemented by China in April this year remains effective.

A report published earlier this year by the National University of Singapore pointed out that China's dominant position in certain heavy rare earth materials is "almost absolute", elements essential for future industries such as robotics, automation, advanced defense, electric vehicles, and green energy technologies.

Against this background, the EU has frequently met with Chinese representatives to confirm the situation.

According to the website of the Ministry of Commerce, from October 31 to November 1, Jiang Qianliang, Director of the Bureau of Safety and Control of the Ministry of Commerce, and Deputy Director-General Laidongne of the Directorate-General for Trade of the European Commission held a "upgraded" Sino-European export control dialogue in Brussels. Both sides had in-depth and constructive communication on mutual concerns in the field of export control. Both sides agreed to continue communication and exchange, and promote the stability and smoothness of the Sino-European industrial and supply chain.

At a press conference held on November 3rd local time, the European Commission confirmed that although the EU believes that the measures taken by China in October to expand the restrictions on rare earth exports in April cover "globally", the EU is still negotiating with China on related past details. The next day (4th), the European Commission stated that EU officials discussed general licenses with Chinese officials, seeking relaxation of rare earth exports to the EU.

Regarding the rare earth issue, China has made its position clear. On October 21st, Wang Wentao, Minister of Commerce, held a video meeting with Ševčovič upon request, stating that China's recent measures regarding rare earth export controls are a normal practice of improving China's export control system in accordance with laws and regulations, reflecting China's great power responsibility in maintaining world peace and stability. China is committed to maintaining the safety and stability of the global industrial and supply chain, and has always provided approval convenience for enterprises in the EU.

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Original: toutiao.com/article/7584361991297450536/

Statement: This article represents the personal views of the author.