• China has started issuing "EU general licenses" for exports of certain critical minerals and rare earths to the European Union, signaling a partial easing of its tightened export licensing regime.
  • The move follows disruptions to EU industries since April 2025, when China imposed export controls citing national security concerns, leading to production delays and sharp price increases.
  • This development is part of ongoing EU-China negotiations under an upgraded export supply mechanism, though the broader export-control framework remains in place.

China has reportedly begun granting "EU general licenses" for exports of critical minerals and rare earths to the European Union, according to Commission Vice-President Maroš Šefčovič. This step marks a selective streamlining of Beijing's export licensing process for EU-bound shipments, aimed at reducing administrative bottlenecks and improving supply predictability for European manufacturers. The licenses are being issued as part of technical talks under the EU-China Export Control Dialogue, reflecting efforts to operationalize an "upgraded export supply mechanism" agreed upon at the July 2025 summit.

Since April 2025, China has required export licenses for a growing list of rare earth elements (REEs), related compounds, magnets, and technologies, citing national security concerns. These controls were expanded on 9 October 2025 to cover 12 rare earths plus associated technologies and even foreign-made products using Chinese inputs, with far-reaching extraterritorial implications. The measures have severely impacted EU industries, which source about 60–70% of mined rare earths and up to 98% of rare-earth magnets from China. According to people familiar with the matter, the disruptions have caused production halts and driven price spikes, such as dysprosium oxide tripling and terbium oxide more than doubling by May 2025.

In response, the EU has accelerated diversification efforts under the Critical Raw Materials Act (CRMA), targeting by 2030 to reduce dependency on any single external supplier to no more than 65%. Initiatives like RESourceEU, announced in October 2025, aim at joint purchasing, stockpiling, and support for strategic EU projects across the REE value chain. A European Parliament resolution in July 2025 condemned China's export controls and urged faster CRMA implementation, highlighting the geopolitical tensions at play. The EU is also preparing counter-measures under its anti-coercion instrument, which could include tariffs or restrictions if diplomacy fails, according to sources close to the negotiations.

Despite the issuance of general licenses, the core export-control framework remains intact, and the EU considers the measures unjustified and coercive. Analysts note that while this move may calm markets in the short term, China is expected to retain dominant market share in REEs, preserving significant leverage. Efforts to reach Chinese officials for comment were unsuccessful, but EU stakeholders have welcomed the development as a step toward stabilizing supply chains. In the long term, experts predict a structural decoupling, with Europe likely to see increased investment in domestic mining, refining, and recycling, alongside partnerships with countries like Canada and Australia.

Correction: An earlier version of this article misstated the timeline for China's export control expansions; it was corrected to reflect the October 2025 date.