"European firms still face challenges in securing access to crucial rare earths from China, a business lobby warned Wednesday, despite a July deal to speed up exports. China dominates the global industry for extracting and refining the strategic minerals, giving it vital leverage in a renewed trade war this year with Washington. Since April, Beijing has required licenses for certain exports, sending ripple effects across worldwide manufacturing sectors."
"But in its annual position paper released Wednesday, the European Union Chamber of Commerce in China said that "many companies-particularly small and medium-sized enterprises (SMEs)-are still experiencing significant supply chain disruptions". "No long-term, sustainable solution has been put forward," it said, adding that the Chamber is in "regular contact" with Chinese authorities on the matter. "We have a number of members who are right now suffering significant losses because of these bottlenecks," Chamber president Jens Eskelund told journalists."
China dominates global extraction and refining of rare earth minerals, giving it leverage in trade tensions with Washington. Since April, Beijing has required licenses for certain exports, causing ripple effects across worldwide manufacturing sectors. A July summit produced an agreed mechanism to speed exports to the bloc, but many companies—particularly SMEs—continue to experience significant supply chain disruptions and losses. The European Union Chamber of Commerce in China reports that no long-term, sustainable solution has been implemented and that only a fraction of more than 140 raised applications have been resolved. The Chamber submitted 1,141 recommendations to Chinese policymakers. A weak Chinese economic rebound, sluggish consumption, a manufacturing glut, and property sector problems compound the challenges.
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