The issue was settled in June, but Germany has only now spoken out to condemn China’s export restrictions on rare earths, which it described as non-transparent and affecting trade relations between the world’s two economic powers.
German Foreign Minister Johann Wadephul said China’s move to require export licenses has created uncertainty among German companies, thus damaging Beijing’s image as a reliable trading partner.
However, China has defended the policy on the grounds that rare earths are “dual-use” materials that can be used for both civilian and military purposes, making their control a sovereign right of the country.
The move has raised global concerns because China controls nearly two-thirds of rare earth production and 92% of global processing, according to the International Energy Agency (IEA).
In an effort to appease the European Union (EU), China has proposed the establishment of a “green channel” to facilitate exports to the bloc, but there has been no further progress so far.
Wadephul also raised concerns about the close Sino-Russian relationship, particularly regarding the supply of goods that could support the war in Ukraine. However, Chinese Foreign Minister Wang Yi denied the allegations and insisted that China does not supply lethal weapons and remains committed to a peaceful solution.
Wang's visit to Europe, including to France and Brussels since June 30, is seen as Beijing's effort to restore its image and rebuild trust, especially as relations with the United States continue to be strained under President Donald Trump.
