In a significant move to secure the global supply chain of critical materials, the European Union (EU) and China have reached an agreement to stabilize the trade of rare earth materials and products. These elements are indispensable for high-tech and military applications, making their steady flow crucial for both economies. The agreement follows a series of discussions between EU Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao in Brussels last Friday. The talks centered on China’s export controls on rare earths, implemented in April and October, and the EU’s regulations on semiconductor sales. Olof Gill, a spokesperson for the European Commission, highlighted the EU’s reliance on China for rare earth materials, which are essential for manufacturing magnets used in automobiles and household appliances. The EU welcomed China’s recent 12-month suspension of rare earth export controls and emphasized the need for a stable trade system. Both parties are collaborating on an export licensing mechanism to ensure a consistent supply of these critical minerals. Šefčovič noted that Brussels and Beijing are committed to further discussions on trade measures, aiming to enhance the implementation of export control policies. With China being the EU’s second-largest trading partner, bilateral trade remains a cornerstone of the global economy, valued at approximately 2.3 billion euros ($2.7 billion) daily. The agreement underscores the shared interest of both regions in maintaining stable trade relations and advancing mutual climate goals.