EU lead ambassador to China calls out rare earth strains on relationship

The European Union’s lead ambassador to China has called for a reset in relations with Beijing, stating that progress has stalled since the summer summit, where a partial easing of restrictions on rare-earth minerals exports was announced.

Jorge Toledo, the EU’s ambassador to China, spoke today at a panel event in Beijing, saying that the EU region’s high-level summit with Chinese leaders in the summer has seen little to no improvement. According to Toledo, the ongoing challenges around export controls, supply chain security, and rare-earth materials reveal no meaningful improvement.

Toledo says EU–China relations remain strained despite easing of mineral controls

Based on a recent Cryptopolitan report, China suspended some export controls on rare-earth materials for one year, which Toledo described as good news and a potential starting point for more cooperation between the EU and China.

Despite saying it was good news, Toledo acknowledged that things have not improved since the summer summit.

According to a Bloomberg report, Beijing’s previous restrictions on the materials raised serious concerns among companies in the European region, which rely heavily on Chinese supply.

Toledo’s remarks also touched on what he considered unfair criticism of the EU in Chinese media. He noted that the bloc was being blamed for broad political tensions, urging Beijing to acknowledge that the EU represents a unified political entity, not just a loose alliance of states.

He noted that the EU is no different from the union of its member states, adding that ignoring the existence of a political union would be a risky move.

Kaja Kallas, the EU’s foreign policy chief, has also spoken on the rare-earth material issue, publicly criticizing China’s export restrictions on critical minerals. According to Kallas, the restrictions have disrupted operations across European manufacturing firms. She called on China to put an end to the distortive practices, noting that they pose significant risks to European companies and endanger the reliability of global supply chains.

Chinese Foreign Minister Wang Yi defended the export restriction as a legitimate control over the dual use of materials, which have both civilian and military applications. He told China Daily Asia that, under the current rules, normal trade channels remain open for European firms.

EU presses China for tangible trade mechanisms to protect the bloc’s companies

Barely a month ago, the European Commission President Ursula von der Leyen revealed that Europe was ready to consider broader responses if China was not willing to restore predictable and open trade in rare earth materials, reflecting a deeper imbalance between the two nations. Toledo’s remarks today reinforce the previous agreements between the EU and China, which focused on cooperation and appear to have stalled, as industrial concerns continue to mount.

China controls the largest share of critical mineral production, and Europe’s dependence creates strategic vulnerabilities. Despite mounting concerns, China has since reassured European firms that it has established a “fast track” mechanism for rare-earth export licenses to EU companies, raising questions about how reliable the mechanism will function in practice.

Based on the Bloomberg report, any reset so far will require more than diplomatic signals; it will also necessitate tangible mechanisms, stable export licensing, supply-chain diversification, and more transparent trade rules. The lack of such practical mechanisms may expose the EU’s industrial base, particularly in the high-tech and green energy sectors, to geopolitical and economic risks.

Toledo’s remarks demonstrated a direct attempt by the EU to reconfigure relations between the two sides while maintaining open channels of communication. On the contrary, the remarks may be viewed as frustration that past promises of cooperation have yet to be actionable, further eroding the level of trust between the nations.