MNI: China Seeks EV Concessions For Rare Earths- EU Officials

China wants concessions from the European Union such as a reduction in tariffs on its electric vehicles before including the bloc in a one-year suspension of export restrictions on its rare earths which it has agreed with the U.S., EU officials told MNI.

The European Commission was quick to reach out to China following its announcement of the suspension of the ban - which had appeared to be universal - but received the reply that the matter would be discussed in talks on Friday between EU Trade Commissioner Maros Sefcovic and Chinese Commerce Minister Wang Wentao in Brussels, the officials said.

QUID PRO QUO

China wants "something in return" for the extension of the suspension to Europe and said that the extension would be on a "case-by-case basis," the sources said, adding that the issue of EV tariffs have been mentioned as a topic for discussion in Friday’s talks. (See MNI: EU To Try To Negotiate With China On Rare Earths Access)

Officials said they have concerns that the new China approach might mark a move away from trade agreements that are comprehensive and long-term to more short-term and piecemeal deals, which may not provide as much certainty and stability for investors.  They noted that the main elements of the U.S.-China deal were also agreed for a period of one year with a commitment to revisit them at that point.