China strikes conciliatory tone in spat over rare earths with Europe

Chinese Foreign Minister Wang Yi struck a conciliatory tone towards Germany and Europe in the ongoing trade dispute over critical rare earths during a visit to Berlin on Thursday.

The issue of rare earths "was not, is not and will not be a problem between China and Europe, between China and Germany," Wang said, according to an official translation, at a press conference with Foreign Minister Johann Wadephul.

If applications are submitted in accordance with the law, "the normal needs of Europe and Germany can also be met."

Wadephul said uncertainties and often opaque export restrictions on rare earths were damaging trade relations and also "China's image in Germany as a reliable trading partner overall."

Individual solutions would not be enough and would not restore lost trust, Wadephul said.

Efforts are ongoing underway to find sustainable solutions to "bring about the relaxation that is urgently needed," he said.

China's export restrictions on rare earths have recently put industries worldwide under considerable pressure, including in Germany.

Companies in the automotive and mechanical engineering industries are fearful about the supply of important metals needed to produce sensors, electric motors and other goods.

When asked whether he thought a compromise with the EU was possible before the EU-China summit at the end of the month, Wang said, "This is not an issue between China and Europe. It is not a problem between us. The question does not arise."

It is common international practice to control the export of dual-use goods such as rare earths, which can be used for both civilian and military purposes. "In doing so, we are also fulfilling our international responsibility," which is in the interests of peace and stability in the world, he said.

If European or German companies have a specific complaint, they can address it to the Chinese government, Wang said. The Chinese Ministry of Commerce has set up a fast-track procedure "to ensure that normal approvals are processed as quickly as possible. In other words, a concession has already been made."

Wang underlined his country's interest in more stable, predictable and reliable political conditions for cooperation with Germany.
China wants to focus cooperation with the new government on economic development, he said.