
The EU and China will hold talks this week to discuss export controls on rare earths and chips
The European Union and China will hold talks this week to discuss the trade dispute triggered by China's tightening of rare earth and chip export restrictions. A spokesperson for the European Commission stated that preliminary consultations began on Monday, and a high-level Chinese technology delegation is expected to be received on Thursday to discuss export control issues.
U.S. Treasury Secretary Janet Yellen indicated that China will delay the implementation of the new export licensing system by one year. The EU is formulating a response plan, including increasing local mineral extraction, diversifying supply chains, and establishing strategic reserve centers, while also considering temporarily allowing NXP Semiconductors chip exports to avoid production stoppages in the automotive industry. EU President Ursula von der Leyen emphasized that all options are on the table, echoing French President Macron's suggestion to use "anti-coercion tools" in response to China's measures
