China-EU relations: China to fast-track rare earth export approvals for EU; decision on brandy import duties expected by July 5

China has announced plans to expedite approvals for rare earth exports to European Union companies and will deliver its decision on the EU brandy import investigation by July 5, the Chinese commerce ministry said on Saturday.According to a statement from the ministry, talks with the EU over pricing commitments on Chinese electric vehicles are also nearing completion, though further cooperation is needed from both sides.The ministry indicated its recognition of EU concerns and "was willing to establish a green channel for qualified applications to speed up the approval process," news agency Reuters reported.These matters were addressed during a meeting between Chinese commerce minister Wang Wentao and EU Trade commissioner Maros Sefcovic in Paris on Tuesday.This development shows advancement on contentious issues affecting China-EU relations over the past year. China's April suspension of rare earth and related magnet exports has disrupted global supply chains affecting automotive, aerospace, semiconductor and defence industries. In a separate statement, the commerce ministry expressed China's openness to enhance dialogue regarding rare earth export controls, acknowledging increased demand from electric vehicle and robotics sectors.

During the meeting, Wang "expressed the hope that the EU will meet us halfway and take effective measures to facilitate, safeguard and promote compliant trade in high-tech products to China."China's anti-dumping duties of up to 39% on European brandy imports—particularly targeting French cognac—have further strained ties with Paris. The move came shortly after the EU imposed curbs on Chinese electric vehicle imports to protect its local industry, leading French President Emmanuel Macron to accuse Beijing of "pure retaliation."

The duties have impacted sales of "LVMH's Hennessy, Pernod Ricard's Martell and Remy Cointreau".Beijing extended its decision deadline on brandy duties from January to April, and subsequently to July 5. The Commerce ministry reported that French companies and associations have submitted price commitment proposals for brandy, with Chinese investigators reaching agreement on core terms. Chinese authorities are currently reviewing the full commitment text and are expected to make a final announcement by July 5, it said.Earliern April, the European Commission announced that the EU and China had agreed to consider setting minimum prices for Chinese-made electric vehicles, as an alternative to the tariffs imposed by the EU last year.China also noted that the EU proposed exploring “new technical paths” related to EVs, which Beijing is currently reviewing.