China reopens the rare metal exports, but leaves the EU out

Forget Houston. Beijing, we have a problem. China has lifted its export ban to the U.S. on several rare metals essential to the digital and energy transitions, yet the EU remains conspicuously excluded.

The sectors most affected include semiconductors and defense. The industries that stand to benefit, among others, are those producing electric vehicle batteries, fiber-optic cables, and infrared sensors. With the materials at the heart of this story being antimony, gallium, graphite, and germanium. 

The decision marks one of the clearest signals yet of easing tensions in a trade conflict that has defined relations between the world’s two largest economies. China controls roughly 70% of global refining capacity for rare earths and critical materials, meaning its policy choices inevitably ripple through global markets. 

The timing is no coincidence. The move comes on the heels of the 30 October Busan summit, though officials on both sides suggest Beijing’s recalibration was already underway well before Donald Trump’s second inauguration. For now, the economic interdependence between Washington and Beijing appears to outweigh hardline rhetoric on both sides.

Attention now turns to the next set of reciprocal gestures: reopening agricultural markets, new commitments from Beijing to curb fentanyl precursors flowing into the U.S., and a possible rollback in Washington of planned tariff hikes on Chinese imports.

The Chinese ban on the EU remains

Europe, however, finds itself on the outside looking in. Beijing is clearly playing a two-track game, extending a selective reopening to the U.S. while maintaining export restrictions on rare earths and critical metals bound for the EU. 

Brussels is responding carefully, even cautiously. A European Commission spokesperson called China’s decision “an appropriate and responsible step,” but beneath the diplomatic language lies a stark reality: there is little cause for celebration. 

Europe remains deeply dependent on Chinese inputs, and the Critical Raw Materials Act will not transform that picture overnight. 

For the EU, the strategic imperative is becoming clearer. It must accelerate direct negotiations with Beijing or risk missing a shifting geopolitical tide that Washington has already begun to ride.