Tensions remain high as China and EU prepare Brussels meeting on rare earths

Tensions between China and the EU over rare earth export controls remain high as they prepare for a meeting in Brussels. The initial planned meeting between EU Trade Commissioner Maros Šefčovič and his Chinese counterpart was canceled, leading to expert-level talks instead. This comes after Germany's foreign minister Johann Wadephul also had a trip to Beijing canceled. China faces accusations of economic coercion through its licensing regime on rare earth exports, crucial for European industries including automotive, defense, Greentech, and digital sectors. EU leaders are under pressure from member states to respond strongly to what they view as unfair trade practices by international partners, particularly China. The EU is considering using its Anti-Coercion Instrument but has not yet made a decision due to differing views among the 27 member states.