China intends to maintain rare earths exports to Europe even if a trade agreement with the United States is not extended beyond January, according to CNBC reporting. He Yadong, a spokesperson for China's Commerce Ministry, said Beijing is willing to continue approving rare earth licenses to European customers when asked about the impact of the upcoming U.S. deadline.
Tensions over rare earths escalated last October when China tightened restrictions on all exports of the materials, including products containing as little as 0.1% of China-sourced rare earths. The restriction followed a U.S. rule that expanded an American blacklist to majority-owned subsidiaries of Chinese companies, potentially affecting around 20,000 Chinese entities. However, the U.S. and China agreed to suspend these measures for one year following a meeting between Chinese President Xi Jinping and U.S. President Donald Trump in late October 2025. U.S. Treasury Secretary Scott Bessent later said the truce was extended by two months to January.
Trade tensions with Europe have eased after European trade commissioner Maroš Sefčovič met with Chinese Commerce Minister Wang Wentao in Beijing last week. China offered to use a "green channel" mechanism to ensure rare earths continue flowing to Europe, while requesting that the European bloc support Chinese imports of certain dual-use sector products. European Commission leaders are meeting in Brussels to review details of the negotiations with China.